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* | Do Not Believe in Quotas— By C.N. Cahill, General Manager, Autopoint Co. 


* How American Coffee Company Fights the Premium Appeals of Direct Sellers 


4 Public Favors Insurance as Safest, Most Productive Investment— MRCA Survey 


* How Shall We Pay Our Salesmen? Let Field Research Supply the Right Answer 


* Bruce Crowell—Marketing Flashes— Sales Letters— Designing to Sell—Spotlight 


HE PERFECT PR od hac PAPER 


FISHERMEN KNOW ABOUT /Zzre 


Tue long, blue swells of the Gulf Stream are beau- 
tiful to look at. Yet every fisherman is cautioned 
against the glaring light they reflect ... The reason is 
the same one which prompts physicians and ocu- 
lists to warn us that: If we want to conserve our eyes, 
we must watch our reading habits and avoid direct 
lights and glare. Light reflections from water, like 
those given off by shiny paper, are a potent cause 


of eye strain, “ Readers’ Squint,” and headaches. 


HOW TO PROTECT YOURSELF AGAINST GLARE 


(vainst the glare of water, colored glasses or tinted 
visors are an obvious precaution ... against glare 
in reading the Kimberly-Clark Corporation offers 
two non-glare printing papers whose colors and 
surfaces have been processed to neutralize it. 
These two non-glare papers, preferred by hosts 
of publishers, are Kleerfect and Hyfect. Though 


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their soft surfaces and neutral colors are the re- 


This advertisement is NOT printed 


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light and absorb reflections. 


HOW TO CUT PRINTING COSTS 


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If you are a publisher or an advertiser and are 
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mailing pieces and catalogs, write our advertising 
office in Chicago for samples. For estimates prov- 
ing how much these two papers can save you on 


your present printing costs, talk to your printer. 


on either Kleerfect or Hyfect. 


KIMBERLY-CLARK CORPORATION 


ESTABLISHED 1872 


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CHICAGO + 8 SOUTH MICHIGAN AVENUE 
NEW YORK + 122 EAST 42ND STREET 
LOS ANGELES + 510 WEST SIXTH STREET 


im "OSL 


aimee 4, , Lec L 


ALL- [Li BOOK PAPER 


Fifty newspapers are 
published in the eleven 
U. S. cities which out- 
rank Milwaukee in pop- 
ulation. Only seven of 
them published more 
advertising than The 
Journal in 1936. 


Se” 


THE MILWAUKEE JOURNAL 


HE Milwaukee Journal was FIRST 

in the world in 1936 advertising 
gains—2,797,479 lines. And that’s im- 
portant to sales executives because of 
the conditions which made it possible. 
The Milwaukee area is far above 
national average in employment gains 
and now has more people on its payrolls 
than in 1929! They are buying a record 
volume of merchandise in many lines 
... and the bulk of that buying is done 
through one newspaper. 


FIRST BY MERIT 


FEBRUARY 15, 1937 


Nastiest Words 


Those dealers in fervent and persuasive words—the copywriters 
of advertising agencies—were properly shocked when The Literary 
Digest published January 16 a list compiled by the National As- 
sociation of Teachers of Speech of the ten ‘‘nastiest’’ or most 
unpleasant words in the English language. 


The teachers’ words were: Phlegmatic, crunch, flatulent, ca- 
caphony, treachery, sap, jazz, plutocrat, gripe and plump. 


But the copywriters were rather pleased, too. It gave them 
a chance to strut their vocabularies. Here’s the list of words 
chosen by the copy department of Kenyon & Eckhardt (none of 
which probably will ever be used in advertising for Kaffee Hag, 
Knox hats, Siboney rum or Revere copper and brass): 


Mucous, rachitic, putrid, dank, scab, blubber, ugh, spit, slimy 
and hickie, 


“Matchless” Promotion—in Tins 


Advertising matches can now be mailed. Barred until now, 
because of the fire hazard, except under special permit, the 
Universal Match Corp., of St. Louis, has found a way. It has 
designed a special asbestos package which is acceptable to Post- 
Ottice authorities. 


The Chicago Evening American. taking advantage of the 
novelty of mailing matches, recently made a general mailing of 
7,500 packages to a preferred list of business prospects. Each 
package contained 12 packets, “billboard” size, or holding twice 
as many matches as the ordinary booklet, in other words, there 
are 480 matches in each gift package. 


On the inside of the folder was a table showing the com- 
parative gains in retail advertising for the American, as compared 
with the othe: Chicago newspape:s. This puts the American in 
first place. On the cover of the large size booklet of matches 
are the words, “Try to Match this.” 


Tickled at the favorable reception accorded this stunt, the 
American's promotion manager, C. L. Gould, pulled another from 


his capacious sleeve. There were some 2,500 members of the 
National Canners Association assembled by the waters of Lake 
Michigan, which gave him his cue When the canning fra- 


ternity returned to their hotel rooms after conventioning all day, 
they found a curiosity-arousing tin can reposing on each and 
every dresser. 


Now even the most frazzled canner who had listened, talked 
and viewed cans morning, afternoon, and evening, could not 
resist seeing what was inside his mysterious can No zipper or 
can-opener was attached, but that merely inspired a do or die 
spirit in the heart of the canners. Fancy a canner lord of 
serried ranks of shining tin, being worsted by a single can 
Somehow they penetrated the containers. 


Inside was a book of matches and a small folder. The folder 
was imprinted with a huge can-opener and a legend stated, “You 


can open the Chicago market easier than you opened this can 
if you use Chicago’s best can-opener—the Chicago American.” 


Some 500 ad agencies and local food accounts also received 
one of the cans. 


Chessie’s Daddy 
Chessie’s”” creator died on February 3. 


Newspaper men remember Lionel Charles Probert as a veteran 
and capable “AP” reporter and executive, in Washington, D. C., 
Vera Cruz, Mexico, and elsewhere. (David Lawrence devoted 
an entire syndicated column to his career.) Advertising men re- 
membered him as the man who “humanized” the railroads through 
a kitten. 


Retiring as Washington Bureau chief and Southern Division 
superintendent of the Associated Press, Mr. Probert went into 
railroading. Successively, he was vice-president of the Erie, the 
Pere Marquette and the Chesepeake & Ohio. 


He put George Washington and Chessie to work for the C. & O. 


Washington was once a surveyor. He blazed the trail through 
the Alleghenies for a canal, which the roads and later the rail- 
roads followed. 
Other railroads 
which used that 
same general route 
west, it was said, 
might have adopted 
him as their progen- 
itor, but the C. & O. 
did, and promoted 
the fact. 


More important 
even than the Fath- 
ct of Our Country 
in C. & O.'s prog- 
ress in the last 
three or four years, 
however, was Ches- 
sie. When you 
travel the C. & O. 
through the Ohio 
valley between New 
York or Norfolk 
and Chicago or St. 
Louis, you will not, 


of course, have to sleep with any kittens. 


In February Chessie goes sentimental. 


And yet, Chessie, a very charming little kitten, is shown asleep 
in a Pullman berth as the symbol of the railroad’s comfort: 
“America’s Sleepheart—Sleep Like a Kitten on the C. & O.” 


Mr. Probert was sitting one Sunday in the Lotos Club in New 
York reading the gravure section of the Herald-Tribune. His 
attention was caught by a reproduction of a painting of a kitten. 
The next day he went to the art gallery which owned it, and 
bought the picture and all rights for its reproduction. 


Chessie became the feature of the C. & O.’s magazine and 
newspaper advertising. She appeared on calendars, on playing 
cards distributed on trains, and, by permission, on other com- 
mercial calendars. 


She has become a very famous kitten. And, in her lazy way, 
she has played her part in making the C. & O. one of the more 
prosperous units in the Van Sweringen’s great Allegheny Corp. 


Calling All Beats! 


If any cross-examining attorney waggles an accusing finger under 
the nose of E. L. Biersmith and demands, “Where were you 
on the night of January 25?” said attorney is going to hear an 


iron-clad alibi. Mr. Biersmith, assistant sales manager of the 


SALES M GEMENT, published semi-monthly, on the first and fifteenth, except in April and October, when it is published three times a month and dated the 

first, tenth and twentieth; copyright, February 15, 1937, by Sales Management, Inc., 420 Lexington Ave., New York, N. Y. Subscription price $4.00 a year in 
vs t r > -— - 29 , _Wv r 

advance. Entered as second-class matter, June 1, 1928, at the Post Office, 1 , under the act of March 3, 1879. February 15, 1937. Volume XL. No. 4. 


SALES MANAGEMENT 


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pm cen ner 


~ Study cra 


DIE HARD anna BUY EASY 


A SMART ADVERTISING MOVE— 


The Chicago market, like any large metropolitan mar- 
ket, is composed of two separate and distinct groups— 
they’re not divided by class, nor cash, nor creed, nor 
color. They are divided by buying habits. They’re 
the liberals and the conservatives . . . the “Buy-Easies” 
and the “Die-Hards.” 


The “Buy-Easies” are young, alert, modern individuals 
with open minds and open purses. Individuals who 
respond to new ideas. Individuals who may, or may 
not, be tops in the “social register”—but who are always 
tops in the “cash register.” And that’s what counts. 
The “Die-Hards” are older, more set in their ways. 
They stick to old ideas and old ideals. They’re cold 
to your sales messages. 

We don’t know what newspapers the “Die-Hards” 
read. We don’t care—and neither should you. The 
American, with its terse editorial treatment, its dra- 
matic pictures and its modern features, is made for 


FEBRUARY 15, 1937 


wor to the [eberal Side 


moderns —for young, alert, up-and-coming “Buy- 
Easies” who earn more and spend more. 

Of course, it’s important that the American has the 
largest evening circulation in Chicago and that it had 
larger retail linage gains last year than any other Chi- 
cago daily paper—but—it’s more important that this 
great circulation is concentrated among the “Buy- 
Easies”—the best prospects for what you have to sell. 


CHICAGO 
AMERICAN 


»+.a good newspaper 


Rodney E. Boone, General Manager 


National Representatives: Hearst International Advertising Service. 


[285] 


SALES 


Inanagemelm! 


Vol. XL. No. 4 February 15, 1937 


CONTENTS 


is Fight...... TETTTEIRTLEL LETT cneewe wee 
What Cooperation May the Advertiser Expect trom the 
By Fred J. Wright 
Dealer Relations 
Crown Rayon Sections in 60 Stores Help Viscose Co. Sell 


"By Lawrence M. Hughes 


Ge | 
MEARE TIGNES. cccicdcssceeeccenneceseverceaversecws 293 
Spotlight a Te ye 329 
Bulletins on the Food | & Drug Legislation Fight........ «. 380 


Management 
How We Minimize the Problem of Wasted Selling Effort.... 339 
By J. Frank Martino, Sales Manager, 
Dallas House, Butler Bros. 
Paint Manutacturer Finds Robinson-Patman Act is a Boon 
In id ot Bane Cc eerercceoscecocores ° ° 
By Lester B. Colby 
Why I Never Tell a Salesman He Has to Lick a Quota.... 296 
By C. N. Cabill, General Manager and Director of Sales 
Aut i int Co., Chicago 


Man Power Problems 
But How Can Life Begin at 40 When Employment Stops 


haat cae tee oe Kesmaded hed hen ae 316 
By Malcolm G. Rollins 
How § We Pay Our Salesmen? Let Field Research 
By John Allen Murpi 
Utility Finds Every Customer Contact a Sales Opportunity... 3 
Market Analysis 
( | Public Favors Insurance as Safest, Most Productive 
Investment iveekeerenesdaeeethae seenenvassnen! See 
T/ lst f eries 


Your Biggest Markets—and How They Seta in Retail Sales 322 
By N. D. Farmer 


Premiums 


How American Coffee Fights the Premium Appeals of Direct 


SONOS cvccsoece cece ° TEEPE TELIER TT EET 5U8 
By R. G. Drown, Jr. 
Product Design 
I OE SM wc daviccbcnsewawebasdniddedsadexennes 373 


Salesmanship 


When You Strike a Dead End in Selling................. 299 
By Bruce Crowell 


Departments and Services 


UOTE. CAI, 6 ince cdr docsdvedesnedsesoecns -- 320 
Commence Werrvriririrririre rit re 38 
ee ee ee 314 
ET ee ee 301 
ee eae er eee eee ee 
SE: BOONE: dc anscievenasskseeeedeasen cavaneaKelen 362 
ee ere, Tee eee ee ee eae 358 
po TTT TTT TTT TTT CTT re eee 284 
BE BORO ic 0.02.000cbb er dinntssdecds wenenesioness 306 
BAD de cavddc den twee usenet beac naeReene tes tanned hee nees 384 


EDITORIAL STAFF RAYMOND Bitt, Editor and Publisher: 
PHitip SAcispury, Executive Editor; A. R. HAHN, Managing Fdi- 
tor; E. W. Davipson, News Editor; M. E. SHUMAKER, Desk Editor; 
F. L. SULLIVAN, Production Manager. 


ASSOCIATE EDITORS: James R. DAntets, LAWRENCE M. 
Hucues, Lester B. Co.isy, D. G. Barro, Maxwett Droxke, Ray 
B. Prescott, L. R. Boutware, FRANK WAGGONER. 


Published by Sales Management, Inc., RAYMOND BILL, President; 
PHILIP SALISBURY, General Manager; M. V. Reev, Advertising Man- 
ager C. E. Lovejoy, Jr., Vice-President and Western Manager; 
R, . SMALLWOOD, Vice-President: W. E. Dunssy, Vice-President; 
yf r KELLY, Secretary; Epwarp LYMAN BILL, Treasurer. Publica- 
tion office, 420 Lexington Avenue, New York. Telephone, Mohawk 
4-1760; Chicago, 333 North Michigan Avenue. Telephone, State, 
1266. Santa Barbara, California, 29 East de la Guerra. Subscrip- 
tion price, $4.00 a year. Canada $4.25. Member Audit Bureau of 
Circulation, Associated Business Papers. 


[286] 


Columbian Steel Tank Co., Kansas City, Mo., has a deep-etched 
recollection of that evening. 


Far from the turbulent waters of the raging Ohio River which 
were inundating the city of Louisville, he had been enjoying 
the warmth of a bonfire with a group of skaters on a lake at 
the home of A. A. Kramer, president of the company, when a 
messenger from the house advised him that the long-distance 
telephone operator had an urgent call. 


He stuck by the ‘phone for over two hours waiting for flood 
damage to be repaired and heavy telephone service to be handled 
before his connection was made. Finally, at one o'clock in the 
morning, he heard the voice of Luther Stein, vice-president of 
the Belknap Hardware and Manufacturing Co. in Louisville. 


“Hello! Columbian? Biersmith? We want all the steel boats 
you have on hand. How many for immediate shipment?” 


“We've got a lot—over 200,” Biersmith said. 


“We can use them and plenty more,” Stein replied. “I’m stand- 
ing in water that is up to my ankles right now, and I’m on the 
second floor of our factory.” 


“O. K.” said Biersmith, “I'll get busy, pronto.” 


By three o'clock several score of workmen and even office 
employes had been called from their beds by Biersmith and were 
at work in the factory preparing the boats for shipment to Louis- 
ville. Company trucks were busy picking up other workers. 


They toiled by the dawn’s early light. 


Early the following morning the first two carloads of boats 
left the loading dock. The remainder of the shipment consisting 
of over 200 round- and flat-bottom Columbian steel boats left 
in other cars before noon. They were of all styles and sizes— 
every single boat Columbian had in stock built through the 
Winter months for early Spring deliveries. 


All railroads participating in the shipment cooperated, and 
a fast freight was held up in Kansas City until the loading of 
the boats could be completed. After leaving the railroad yards, 
the shipment was ‘red balled” and given the right of way which 
all freight for the inundated areas commanded. The boats were 
accordingly delivered in Louisville in a fraction of the time re- 
quired for ordinary shipments. 


Government agencies said they were ideal for relief purposes 
because of the air-tight bulkheads which prevent the boat from 
sinking even when filled with water and because the riveted and 
soldered seams assured the boat’s being water tight and ready 
for immediate service after the long journey by rail. 


Space Buyer Swap 


Four New York agencies—having duly swapped space buyers 
all around—are ready for the Spring season. Brown & Tarcher 
started it, several weeks ago, by taking Arthur C. Smith from 
J. M. Mathes, Inc. Then the Mathes agency took Dougles R. 
Hathaway from McCann-Erickson, Inc., to replace Mr. Smith. Then 
McCann-Erickson took John J. Flanagan from Geyer, Cornell & 
Newell, Inc., to replace Mr. Hathaway. And now Geyer, Cornell 
& Newell takes G. M. Lewander from Brown & Tarcher, to 
replace Mr. Flanagan. All four agencies seem quite happy about it. 


SALES MANAGEMENT 


= 


DON’T TAKE OUR WORD FOR IT 


ee 


Let Mr. Roger .W. Babson, na- 
tionally known business analyst, 
describe the prosperous Louisville 
market! Mr. Babson said: 


OUISVILLE has one 
of the brightest outlooks of any Amer- 
ican city for 1937. I am bullish on 
prospects for the Nation as a whole in 
1937, but I am particularly optimistic 
on the South and on Louisville. 


“Louisville is already well on its way 
to a building boom. At the bottom of 
the depression the monthly value of 
permits issued amounted to $30,000. 
The present level is close to $600,000. 
Next year’s to- 


Louisville’s industry and Louisville’s 
citizens will benefit materially from 
this activity. 

“Holiday sales have been the best in 
years, running from 20 to 40-per cent 
in some lines over last year’s Christmas 
total. This trend toward greater 
retail trade should be maintained in 


1937. 

“Kentucky’s great tobacco crop should 

continue to bring its share of pros- 
perity to your 


tal may run 25 
per cent, per- 
haps 50 per 


cent — higher! 


ee 


“I estimate that Louisville will run considerably 
ahead of the remainder of the country during the 
I forecast that we will see 
general business averaging 15 to 20 per cent above 
the corresponding months of 1936 in your city.” 


early months of 1937. 


area from both 
a trading and 
industrial 
standpoint.” 


a2 


Alert advertisers will profit from Mr. Babson’s analysis 


of conditions in the rich Louisville area, economically 


and adequately covered by one low-cost medium.. 


Che Conrier-Zournal 
THE LOUISVILLE TIMES 


REPRESENTATIVES: 


FEBRUARY 15, 1937 


RADIO W 50,000 
STATION AS WATTS 


THE BRANHAM COMPANY. 


Alfred P. Sloan, Jr., President 
General Motors Corporation 


n 4 } ? 
’ VRO ~ Clarence Schukei is one of the 


508 Iowa Chevrolet dealers who sold 19,943 
new cars in the first nine months of 1936— 
to set an all-time high in Chevrolet sales. 


Speaking of all-time highs, Mr. Sloan, 
the folks in Clarence’s home town of 
Waterloo helped us set the new all-time 
record for Des Moines Sunday Register 
circulation—now more than 300,000. In 
Waterloo (in spite of it being 130 miles 
northeast of Des Moines) the Sunday 
Register reaches 6,935 out of the 11,957 
families. And it’s that way in 200 of the 


MR. SLOAN — meet 
MR. SCHUKE/ 


(your Waterloo, lows, dealer) 


Clarence Schukei of Schukei 
Motor Co., Waterloo, lowa 


# 204 Iowa cities and towns of 1,000 aan 
j tion and over, where the Sunday Register 


has an average coverage of 65%! 


Just as you, Mr. Sloan, speak of the 1937 
Chevrolet as “the Complete car” — so we, 
too, might call the Des Moines Sunday 
Register the Complete Iowa advertising 
medium. Clarence Schukei of Waterloo, 
and other Iowa dealers co-operate with 
manufacturers who back them up with 
Sunday Register schedules—schedules that 
concentrate big volume readership right in 
their own local communities. 


THE DES MOINES REGISTER AND TRIGUNE 


r288} 


SALES MANAGEMENT 


—— 


REET ae 


FEBRUARY 


A LOT of magazines made good gains” 
during the year just ended. We’re 
glad to see this because it means good 


business. ‘ 


The Post also did well. In fact, looking 
at the picture as a whole, The Post 


shines with especially bright lustre. 


For instance, The Post’s 1936 gain in 


advertising revenue was more than 


twice that of the nearest magazine 


and exceeded the gain of any other 


two magazines. 


Stated another way, the total adver- 


tising revenue earned by The Post 


was more than that of all other 


weekly magazines combined. 


Here are the figures: total for 
The Post, $26,384,013. Total 
for the runner-up, $11,341,994.50. 


The warm fact back of these cold figures 
is that the vitality of The Post keeps it 
way out in front—no matter how others 


SATURDAY 
EVENING POST 


“AN AMERICAN INSTITUTION” 


)} INDEPENDENCE SQUARE, PHILADELPHIA 


the ( 5reatest 
SHOW on EARTH 


AYE 
& 


MERCHANTS 


in 1. MOTIONS 


TEP right up, folks—see the greatest show on earth! See the 
most beautiful girls in the world . . . see the wild animals . 
watch death-defying feats . . . breathe an atmosphere of adventure 

. ++ Escape from the dull routine of your life! 


You leave care and trouble behind when you go to the “greatest 
show on earth.” You go for entertainment! 


a: 2 


Fawcett publications are skilled merchants in emotions. Between 
their covers is the greatest show on earth; they do not tire their 
readers nor bore them—they entertain. That is the reason for their 
remarkable success. 


By dealing in emotions, Fawcett Publications appeal to the masses 
whose incomes now are up. They reach the market in which 80% 
of all buying is done. Circulation of Fawcett Women’s Group— 
89% newsstand—is now at a new time high—2,200,000 A B C, with 
a generous bonus each month, Ist quarter, 1937, shows an adveriis- 
ing revenue of 44.5% over the same period of 1936—and 1936 was 
a record breaking year in both advertising and circulation! 


FAWCETT 


With incomes well above the average for the United States, Fawcett 
Women's Group readers represent a tremendous market for almost 
everything. They average 25.5 years of age and 56.7% of them are 
married. Their families average 3.89 persons each. 97% have family 
wage-earners. 

Fawcett Women’s Group offers you a quick, economical sales route 
to America’s mass market. Ask your advertising agency. 


RECORD GROWTH! 


Circulation for Fawcett 
Women’s Group... 


‘ 


ee last 6 mo. 1935 
SOT ONE . ws Ist 6 mo. 1936 
 e-» |. last 6 mo. 1936 
oy re January . 1937 


*Publisher’s Estimate 


PUBLICATION S inc. 


The magazines with the human touch 


FAWCETT WOMEN’S GROUP: Screen Book, Screen Play, Motion Picture- Movie Classic, Hollywood, Movie Story 
Magazine, Romantic Stories, True Confessions. 


FAWCETT DETECTIVE UNIT: Daring Detective, Startling Detective Adventures e MODERN MECHANIX 


New York ® Chicago © Los Angeles © San Francisco © Atlanta 


[290] 


© Editorial Offices: New York © Hollywood © Greenwich, Conn. 


SALES MANAGEMENT 


FEBRUARY 15, 1937 


Advertised exclusively in the Chicago 
Sunday Herald and Examiner, a model 
suburban home (price $17,500) drew 
thousands of interested visitors. 3,300 
were later questionnaired—by mail. 650 
responded. Among other things, nearly 
90% of them —584— said: “I have $2,500 
or more in cash ready for a down 


payment on a home.” 


Proved responsive, able to buy, ready 
to buy — the advertiser's dream come 
true! Vast groups of such prospects in 
the ‘most-a-million-family circulation of 
the Chicago Sunday Herald and 


Examiner await the buying suggestions 


your copy would give them. 


\ 


sy: " 
AK 


\ 


A <eW 


In the LIMA, Ohio, 
Trading Area 


Of the 235,756 population in this 
prosperous trading area, 64°cis rural. 
Thus advertising addressed wholly to 
townspeople reaches but little more 
than one-third of those who patron- 
ize the stores carrying your product. 


Nm 
\o 
N 
— 


Farm Trade Makes 
Trading Centers 


Every trading area map shows a focal point, 
the “trading center”, with radial lines reach- 
ing to minute dots that locate the positions 
of other towns. 


All the rest of the area is filled with farms. 
The farmer ranges over the entire trading 
area to do all his buying, for today he shops 


on wheels and even the farthest limits are 
but minutes away. 


Almost always the farmer knows what he 
wants before he starts. He gets his buying 
ideas from the advertising he sees in the 
magazine he reads. 

Timely, compelling pages like these shown 
here ... possible only with 4-Day Printing 
... command thorough reading of your ad- 
vertising by 1.300.000 modern farm families. 


Farm Journal belongs on every national 
magazine list. 


FARM JOURNAL 


Fastest Growing Magazine 
in the National Farm Field 


<M 


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SALES MANAGEMENT 


Strikes are always disturbing 
—especially to those mixed 
up in them—but some people 
forget that they are in the 
headlines only when business 
is improving. 


Strikes 
and Floods 


@ @ e Walter Paepcke, the progressive young presi- 
dent of The Container Corporation of America, put it this 
way to a SALES MANAGEMENT editor the other day: ‘““We 
have had strikes and of course we don’t like them. But 
we never have strikes when business is bad, and if I had 
to choose between strikes and expanding sales and profits, 
and no profits and no strikes, I would certainly vote for 
strikes.” 


@ e@ e Workers naturally want to get theirs and they 
see a better chance of getting it as unemployment declines. 
They are then in a better bargaining position. It may be 
significant that until recently the American Federation of 
Labor in making its unemployment estimates figured that 
600,000 persons per year are being added to the employable 
class by population increase. Recently they have cut that 
estimate down to 500,000 persons per year and even this 
rate of increase is much faster than allowed by other au- 
thorities. President Roosevelt recently used a figure of 
400,000 a year. 


@ @ @ It is fairly generally agreed that in the depth 
of the depression 15,000,000 workers had no employment. 
Now, with the 400,000 a year increase as a revised esti- 
mate, it seems probable that actual unemployment, including 
the workers on government relief projects, may not be more 
than somewhere between 6,000,000 and 7,000,000. 


@ @ e@ The main economic effect of floods is the de- 
struction of wealth. Some buildings and factories have 
been ruined and of course there has been frightful suffering 
on the part of individuals. But as far as national business 
activity and national income is concerned, the flood influ- 
ence may not be so far reaching as it seems. Only a few 
major industrial organizations have been directly affected. 
Relief funds will compensate for much of the loss in indi- 
vidual purchasing power and the long term program of 
flood control will pour hundreds of millions of dollars into 
the affected areas. The longer term effect is adverse because 
new debts must be assumed; therefore, flood effects are 
inflationary. For the immediate future, however, business 
in many lines will be stimulated by the need for reconstruc- 
tion and replacement materials. 


@ @ e@ SALES MANAGEMENT checked with a number 
of manufacturers and wholesalers in cities far removed from 
the flood sections and found that stocks of many commodi- 
ties in cities like New York, Philadelphia, Cleveland, De- 
troit and Chicago had been completely exhausted by the 
call for replacements and emergency supplies from the Ohio 
and Mississippi River Valleys. 


@ e@ e A poll made last week by Congressional In- 
telligence, Inc., shows that the Senate is overwhelmingly in 
favor of the Miller-Tydings Price Maintenance Bill. Sixty- 


FEBRUARY 15, 1937 


Significant Trends 


As seen by the Editors of SALES MANAGEMENT for the fortnight ending February 15, 1937 


one Senators definitely favor it, six oppose it, and out of a 
group of twenty-two marked “uncertain” the majority are 
new members who are not familiar with the proposed legis- 
lation. 


@ @ e@ Opponents of the bill, representing depart- 
ment and chain stores, had their innings before the House 
Judiciary Committee last week and warned Congressmen 
that passage of the Miller-Tydings Bill would give ‘‘certain 
manufacturers complete control over certain lines of indus- 
try and would mean the raising of prices to consumers and 
lead to a buyers’ strike.” Mr. Walker, of Macy’s said: 
“The effect of this bill would be to freeze retail and whole- 
sale prices at uniform levels. It would make retail prices 
higher than they now are. The bill would raise the cost of 
living. It legalizes a raid on the family pocketbook. 


@ @ e “Under existing law,” continued Mr. Walker, 
“any manufacturer can control his prices by bona fide agency 
arrangements under which he assumes full distributive risks. 
He is also free to open his own stores or to sell direct to 
the consumer. Within the limits of the law, he is free to 
refuse to sell to those retailers who do not observe his sug- 
gested prices. He needs no further protection.” 


@ @ @ ‘The somewhat raucous laughter you hear 
comes from manufacturers who have tried in vain to keep 
R. H. Macy & Co. from getting their merchandise and sell- 
ing it at cut prices. 


@ e@ e Spring is the most active season in the pro- 


= 


Black Star Photo 
Building contracts last year were considerably more than 
double those of the depression low year of 1933 but we still 
have far to go. Last year’s contracts, for example, were less 
than half of the 1929 figures and they were also considerably 
under 1925 and 1926. One of the largest insurance companies 
in the country maintains a very detailed record of the build- 
ing situation in all important cities. Elaborate charts show 
existing buildings by types, the annual losses through fires and 
demolition, the number of births, the number of marriages, 
etc. It is their judgment after surveying all known facts that 
the country is going on a building spree during the next five 
years which will eclipse any other five-year period in our 

history. 


{293} 


duction of durable goods and a relatively dull one in con- 
sumer goods. During March to May inclusive, production 
of durable goods usually runs between 10 or 20% or more 
above the broad monthly average for the year. Steel pro- 
duction has been getting nearer and nearer to capacity as a 
result of increasing calls for durable goods. Most of the 
recent unemployment has been higher in durable goods or 
in services depending on them. 


@ e@ e Exceptionally rapid expansion—34% over a 
year ago—is shown by building permits for the past month 
and, barring serious labor troubles, greater things are prom- 
ised in the Spring. It is then that new structures are speci- 
fied in greatest volume, though of course their actual erec- 
tion continues through the Summer and into the Autumn. 


The Employment Status of Leading 
Industries as Revealed by 
Government Reports 


BASED UPON INDEX NUMBERS BY INDUSTRIES DEC. 1910 


tron and Steel 


Men's Clothing Women's Clothing 


Meat Packing 


Woolen Mills Cotton Mills 


Tires and Inner Tubes Agricultural implements 


Cr 6S O3 Aa 


SOURCE OF DATA U_ 5S. BUREAU OF LABOR STATISTICS sername 10% Oe The Cemae Pome 


The volume of industrial production in December, according 
to the Federal Reserve Board’s index, was higher than the 
monthly average for 1929 though not equal to the peak month 
of that year. The index figure stood at 121 (1923-1925 equals 
100). The monthly letter of the National City Bank of New 
York says: “The business improvement is proceeding under 
the driving force of unsatisfied wants and the desire of busi- 
ness men to do business; the forward movement is cumulative, 
and the momentum will carry it on as long as the progress is 
orderly and the equilibrium is maintained. The rise in trade 
shows that the economic system is in better working order, 
with costs, prices and incomes of the various elements of the 
population all in better balance than for many years, thus 
promoting production and the exchange of goods.” 


The average 
net income of 
farmers in 
1935 amounted 
to $1,001, com- 


Farmer’s Income 
puted on a 


Now $1,000 | 


it comparable to the income of urban manufacturing 
workers, who received $1,041. This is a summary of the 
National Industrial Conference Board's study called, “In- 
come in Agriculture.” 


@ e@ e In arriving at its estimates, the Board included 
income earned by farmers from work done off the farm, 
amounting to more than a billion dollars, or an average of 
$150 for every farmer in the country. The farmer’s income 
received in kind was revalued at retail prices instead of at 
farm prices. Governmental rental and benefit payments, 
averaging $82 a farmer, were also included. 


[294] 


@ e@ e@ More than 1,500 corporations are subscribing 
to the Universal Air Scrip plan which enables personnel of 
the companies to save 15% on one way tickets and 5.5% 
in addition to the present 10% saving on round trips. The 
scrip permits the holder to fly over any or all of the 19 
major airlines in the country. 


@ e@ e@ The dollar value of retail sales of new pas- 
senger automobiles in December reached a point 75% 
greater than the 1929-1931 average. 


@ e@ e Reports from Washington indicate that Gen- 
eral Hugh Johnson's plan of building a new NRA and 
making it work has considerable Congressional support. 
His idea is to let employers do as they please about hours 
and wages. But! Determine the hours per week that are 
desired, say 40, and the minimum hourly wage, say 40 cents. 
Then, Congress having the right of taxation, he proposes a 
revenue measure to provide funds for Federal unemploy- 
ment relief to come from three excise taxes: 


@ @ e@ “First, a tax of 20 cents per man-hour for all 
man-hours worked over 40 per worker per week; second, 
a tax per man-hour equal to the difference between any 
man-hour rate actually paid which was less than the statu- 
tory rate and 120% of the statutory rate; third, to offset 
and provide unemployment relief for too rapid displace- 
ments of men by mechanization or otherwise, take as the 
normal yearly per man output in dollars for any particular 
employer, the value of this gross production divided by the 
number of workers (man-hours) he had that year. That 
was his output per worker. For every subsequent year. 
assess as an excise tax 10% (or some other per cent) of 
any increase in this figure of dollars’ worth of output per 
worker.” 


@ e e For the first time in the history of the United 
States it is now possible to buy beer in each of the 48 states. 
Alabama was the last state to legalize it. 


@ @ e More than 75% of food manufacturers, whole- 
salers and retailers who replied to a questionnaire sent out 
by the Associated Grocery Manufacturers of America ap- 
prove the intent of the Robinson-Patman Act. More than 
40% reported having been benefited so far from the opera- 
tion of the act and another 15% expect they will benefit 
from the law in the long run. 


@ @ e@ The results of the survey show that in addition 
to approving the intent of the Anti-Price Discrimination 
Law, a clear majority of all branches of the industry favors 
the restrictions imposed by the act on quantity discounts, 
brokerage, advertising allowances and also application of 
the act to both buyers and sellers. 


@ e@ e@ Complete reports of new passenger cars regis- 
tered in the United States during 1936 show the following 
unit figures and rankings as compared with 1935: 


1936 1935 
Position Make Position 
1—928,514....... | ere 655,772— 2 
2—747,702....... pee: 826,076— 1 
3—499,114....... Plymouth .......... 382,929— 3 
Et , RE 178,763— 4 
5—17GAF1 «occ Oldsmobile......... 149,370— 5 
oe Yt ee DES arichestencases 140,116— 6 
ee eee Rianne eaiaaid. 87,624— 7 
8— 99,259....... Hudson © ......sss0. 75,424— 8 
9— 68,753....... a 37,649—10 
10— - 67,967 666065. Studebaker ......... 39,570— 9 


* Includes Terraplane 
Total All Makes 
CO LESTER IAS 2,742,439 


SALES MANAGEMENT 


-FORWARD 


er 


Good By, Good Luck: Paul G. Hoffman, left center, president of Studebaker 
Corp., shakes hands with Harvey Stowers, sales training director of Stude- 
baker Pacific Corp., as the latter starts the tour. Others, from left to right, 
C. Scott Fletcher, sales promotion mgr.; R. F. Gloster, regional mgr.; Geo. 
D. Keller, v.-p. in charge of sales; D. R. Osborne, sales training director; 
Luther Johnson, M. DeBlumenthal, William Donnelly, research engineers. 


Veteran: Daniel J. Saunders, with 
the Permutit Co., New York, for 
17 years, is promoted from asst. 


A Caravan Sets Off: 
(Left) Three van loads 
of sales promotion and 
research exhibits are 
started rolling by Stude- 
baker to hold meetings 
and demonstrations in 
66 key cities of 35 
states. Research engi- 
neers and sales execu- 
tives will go along to 
give talks, talking 
movies, and mechanical 


exhibitions for three 
months. Studebaker 
dealers and _ salesmen 


will form the audiences. 


SHOTS 
FROM THE 
FORTNIGHT'S 
NEWS REEL 


to mgr. of industrial sales. 


Youngster: Lonnie Allmond, 
newly appointed _ regional 
sales and promotion director 
of the Texas division of the 
Borden Co. is only 29. 


Switches: Merlin H. Ayles- 
worth, R-K-O board chairman, 
for ten years president of Na- 
tional Broadcasting Co., organ- 
izer of the first radio network, 
will resign on March 1 to join 

Scripps-Howard Newspapers. 


Harris & Ewing 


Coal Man: James P. Duffy, ad. 

mgr. for the past seven years of 

Delaware, Lackawanna & West- 

ern Coal Co., becomes asst. to 

the president of Anthracite In- 

dustries, Inc., in charge of ads 
and merchandising. 


LOS SORDOS 
OYEN USANDO EL 


ACOUSTIC 
7 


Underfoot Ad: The Mexico City traffic 
cop gets off the hot pavement and into 
the air where motorists can see him be- 
cause four merchants were alert to an 
advertising opportunity. They provided 
scores of these wooden stands without 
charge and put their selling messages on 
the sides. Translated, the Spanish legend 
reads, “The deaf hear again with Acousti- 
con.” Dictograph Products Co., Ine., 
congratulates its Mexican dealer for being 
wide-awake. 


Soap Man: Arthur F. Danz, mgr. of the 
industrial division of Colgate-Palmolive- 
Peet, goes over to Kirkman & Son, Inc. 
He will serve as v.-p. and gen. mgr. of 
the Brooklyn soap company, which is 
celebrating its 100th anniversary. 


Why I Never Tell a Salesman 
He Has to Lick a Quota 


HEN the average sales man- 
ager feels his nose (maybe 
sensitive) being pressed 
down on the grindstone of 
urgency by the insistent demands of 
the big bosses for greater sales volume 
—can you blame his inclination to give 
up the knotty problems of scientific 
selling and take the easy, popular way? 

Certainly far less mental effort will 
be required if he reasons that, if more 
sales must be made, it is only a mere 
matter of requiring that each indi- 
vidual salesman sell more goods—and 
forcing him to do it. 

Of course no sales manager ever 
arrives at this rather brutal decision 
through such direct and elemental rea- 
soning, yet the final results are always 
the same—Presto! Chango! The same 
quota. 

Does the sales quota really have any 
unusual merit? 

Well—if wide, persistent and gen- 
eral use is any proof, then we must 
admit that the sales quota is a fully- 
tested, absolutely reliable, standard 
and unfailing method for increasing 
sales pronto and in a big way. 

Yet I, for one, doubt the proof! 


Quota’s Merit Goes Unproved 


Mere popularity is not conclusive. 
For instance, the fact that mediocrity 
is far more prevalent than is high ex- 
cellence, is rather unreliable “proof” 
that mediocrity therefore has a value 
to be preferred. The sales quota is 
popular mainly because so seldom 
tested in comparison with other meth- 
ods. I am sure that when sales man- 
agers in general begin to try other 
means, the unmerited fame of the 
sales quota will rapidly grow dim. 

However, the easier the preparation 
—the shorter and more simple the 
method—the quicker a thing can be 
done—the better (?)! Alexander the 
Great taught us than when he cut the 
Gordian knot. So (in our strictly 
hypothetical instance) George the 
Bellringer, who sold $7,500 last 
month, is informed that his sales are 
to be $9,000 this month. If not, the 
sales manager is ‘‘going to be terribly 
disappointed,” to say nothing of his 
embarrassment. George has been in- 
timately acquainted (and bored) with 
sales quotas off and on for 25 years, 
so there is really nothing in that 


{296} 


Moffett 


BY 
Cc. N. CAHILL 


General Manager and Director of 
Sales, Autopoint Company, 
Chicago 


This sales director doesn’t 
believe in driving men to 
meet an arbitrary increase in 


sales volume. Instead, he 


puts them into competition 
with their own past records 
and lets sporting blood take 


its course. 


“news’’ to step up his pulse-beat, fire 
his imagination, or fill him with the 
fever of enthusiasm. 

As to definite suggestions for the 
obtainment of that $2,500 boost in 
sales, he reads, “Step on the gas, Old 
Man, we know that you can do it. We 
are depending on you, George,” etc. 
Outside of the implied respect for his 
loyalty and unusual sales ability, there 
is nothing to elate him. In fact, he is 
inclined privately to resent thus being 
“rewarded” for winning distinction as 
the big shot of the organization. 

“Go-getter Jim,” vastly pleased with 
his success in making ‘em sign on the 
dotted line for $5,000 worth, that 
came mighty hard during the tough 
days of the ultimo, loses much of his 
enthusiasm when he learns that there 
will be no joy in the home office un- 
less he turns in $6,000 worth of 


encouragement during the proximo. 

And so on down the line to the 
tail-enders who can be moved from 
the rut only by something far more 
potent than a sales quota enfeebled by 
age—exploding dynamite, for instance. 

Whether so intended or not, this 
method of dictatorially imposing a set 
task on the salesman looks to me like 
nothing but just plain duress in dis- 

uise. 

Although the salesman is well aware 
that he will be remunerated by in- 
creased earnings for his extra effort, 
he is thus made conscious of being 
placed under a pressure that constantly 
will be increased by the setting of still 
higher quotas does he succeed in meet- 
ing the first. It is one thing to try by 
pressure to wring extra effort out of 
the salesman by setting a quota. It is 
quite another, and psychologically dif- 
ferent thing to encourage, to stimulate, 
and to aid the salesmen Aimself to 
step-up sales, 

Really great salesmen are proud, or 
sensitive, or high-strung, or tempera- 
mental. Some are a combination of 
all of these—“bundles of nerves!” 
With them, as with a thoroughbred 
race horse, the use of either bit or 
spur is not advisable. 


Good Men Are Insulted 


All have highly developed initiative. 
So naturally they look upon the quota 
as a sort of left-handed insult to that 
initiative. They are inclined privately, 
if not openly, to resent the quota as 
an unjust penalty imposed for the pos- 
session of sales ability and an eager 
willingness to make unusual selling 
effort. To all practical purposes, is it 


, not just that? 


To support the popular theory that 
the quota inspires the salesman to un- 
usual effort, I have observed absolutely 
no proof. On the contrary, this 
method appears to me to be lacking in 
all elements of inspiration. What it 
does possess in full measure seem to 
be elements that distract. 

Unavoidably it lays the huge part 
of the excess burden on the shoulders 
of the salesmen who are already carry- 
ing the big load. Thus it appears to 
be naught but a confiscatory tax on 
ability and initiative. 

Assuming that capable salesmen 
have intimate understanding of the 


SALES MANAGEMENT 


aoereyemeenns 


eh hla at etite Ba vatAe: a 


es tt 


perupernevencecaas 


Poa OSS 


products, policies and merchandising 
plans of a company, I believe that 
little can be done to increase their 
productivity other than to take every- 
thing out of their way that would 
otherwise hamper their efforts—mean- 
ing both mental and physical bars. My 
own observations lead me to believe 
that a really great salesman uncon- 
sciously challenges any quota set for 
him. And he challenges it negatively, 
because a quota is a negative thing to 
him. 

The poor salesman always considers 
almost any quota as being “‘too high.” 
If it is desired to eliminate him, that 
objective is easily accomplished simply 
by setting his quota so much higher 
that he will quit voluntarily. This, I 
believe, is one of the few really useful 
purposes of the sales quota. 

I grant that if maximum sales are 
to be won, the sales manager must 
employ means to increase the efforts 
of all salesmen. Yet these means must 
be encouraging and inspirational—not 
mere methods of pressure. If the 
salesman does not himself have a 
genuine desire to sell—all the duress 
in the world will fail to make him 
do it! 

It is true that the sales quota sets a 
definite goal for the salesmen. Yet at 
the same time there is unavoidably set 
—through autosuggestion—an equally 
definite limit. When the salesman 
reaches his limit, there comes the 
natural inclination unconsciously to let 
down. 


“T’m the Best Man Here” 


Instead of trying to increase sales 
through the shallow ruse of setting an 
arbitrary quota, I favor making an 
appeal to that irresistible desire, in- 
herent in the most capable members 
of the human family—the desire to 
win in competition with their fellow- 
men! This means that I favor putting 
salesmen in competition with them- 
selves, with one another—or both. 

By this method you do not attempt 
to make the salesman a serf under 
duress; but challenge him as a free- 
man to demonstrate his ability. No 
really great salesman will refuse to ac- 
cept this challenge. It is a direct appeal 
to his ‘‘sporting blood,” the possession 
of which is the chief distinguishing 
characteristic of the highest type of 
salesman. 

Through this method, sales of Auto- 
point products have been increased 
phenomenally. To be definite: We 
expected an increase in December, 
1936, of 25% over our sales for the 
same month in 1935. Our salesman 
gave us an increase of 93%! 

In connection with this method 


FEBRUARY 15, 1937 


In Person: The original “Napoleon” of the comic strip “Napoleon and Uncle Elby,” 
a 190-pound St. Bernard, is informed by his master——Cartoonist Cliff MeBride—that he 
is now appearing on billboards in six Pacific Coast states. Union Oil Co. is using the 
comedy characters to give its ads a change of pace. Lord & Thomas is the agency. 
An important reason for employing the dog and his fat boss is that they are well and 
favorably known to newspaper readers, their comedies being syndicated in 50 papers. 
The real Napoleon is undergoing training for movie work, performing in several 
pictures about to be released. Union is pleased at the additional publicity angles. 


Utilities Chief: Campbell Wood has been 
named director for public utilities of the 
Kelvinator division of Nash-Kelvinator 
Corp. His department will maintain gen- 
eral offices in Detroit and branch offices 
in New York and Chicago to cooperate 
with public utilities in stimulating con- 
sumer use of electric service. 


Climbing: C. M. Wilson becomes sales 
manager of the radio division of General 
Electric’s appliance and merchandise de- 
partment. For the past year and a half 
he was GE s.m. in the Middle Atlantic 
district, with headquarters in Philadel- 
phia. Previously hé was in charge of 
Pierce-Phelps, Inc., sales in Pa. and N. J. 


[297} 


“Comparative Sales Standings’’—one 
of the most important of the weekly 
mailings to salesmen is our ‘Confiden- 
tial Sales Standings’ sheet. This lists 
the sales made personally by each and 
all salesmen and district sales man- 
agers Not merely the grand total, but 
the total of each product sold by the 
individual. The tabulation enables the 
salesman to compare his sales on each 
product with those of any other sales- 
man he elects. He need not conjec- 
ture. He has facts and figures care- 
fully compiled and verified by the 
accounting department as a basis for 
helpful analysis. 

Remarkable results show up by rea- 
son of the study of these comparative 
standings by the salesmen. For in- 
stance, a salesman in Kansas is thereby 
shown to be selling five times as many 
rubber erasers as is a certain salesman 
in Missouri. Maybe the Kansas sales- 
man has been somewhat favored by 
certain factors closely relevant to the 
recent Presidential election. Be that as 
it may, the salesman in the ‘‘show-me”’ 
state immediately asks himself why he 
does not sell as many rubber error 
eliminators as that chap in Kansas. 


This Challenge Gets Response 


We have noticed that when a new 
top-notch salesman starts with us, he 
may pay no particular attention to the 
sales standings for a time. But slowly 
and surely the figures, and their mean- 
ing, get under his skin. Sooner or 
later we see plenty of evidence that he 
has a strong ambition to be Salesman 
No. 1, and in all of the classifications. 

In this same connection another 
simple form—yet of indispensable im- 
portance—is mailed every month to 
each salesman and district sales man- 
ager. It is mimeographed on a regu- 
lar letter-size sheet. A sample reads: 
is biti tedik ine ik wn da dare eah I eee 
During January, 1936, your personal gross sales 
amounted to seccoscossenres BO BED a 

lanning our production, will you kindly fill in 
elow the amount of gross sales you expect to 
secure in January, 1937? 

AUTOPOINT COMPANY 


(Signed) C. N. Cahill 
General Manager 


C, N. Cahill, General Manager 
Autopoint Company 
Chicago 
During January 1937 I confidently expect to 
make personal sales totaling $................ 
This would be a ......% increase (Box for 
check), decrease (box) over January 1936. 
DNDN ‘.ttteeuabaddoucsiawhieses 
“LET'S MAKE 1937 A LUCKY YEAR” 


Note that the salesman, at his own 
option, may indicate either an increase 
or a decrease! Either way, he has 
definitely indicated both his attitude 
and intent. And whether or not he 
desires to compete with other sales- 
men—he is being diplomatically urged 
to compete with himself. 

Note also that there is no dicta- 


{298} 


tion from the sales manager—not even 
a vestige of any impending pressure. 
Most important is the obvious fact that 
he, himself, is to set his own quota as 
he elects. 

The majority of our salesmen pass 
well over the marks they themselves 
set. We know that those who do not, 
are either marking time or beginning 
to go down-hill—a condition requir- 
ing prompt and serious attention by 
the sales manager. They get a kick 
out of telling us how much more they 
expect to sell next month over the 
amount sold during the same month 
a year ago. When they reach their 
self-set goal they experience another 
burst of enthusiasm that keeps them 
going ahead full-speed with their sell- 
ing, instead of letting down. 

I am not attempting herein to dis- 
cuss incentives, such as contests, hon- 
ors, rewards, prizes and bonuses. 
Often these are so offered that the 
reward goes to those who least need 
it—the bellringers; while the medium 
volume sellers, who always constitute 
the majority, get nothing. These lat- 
ter are inclined to make no extra sell- 
ing effort as it is conceded at the 
start that the leaders have the rewards 
in the bag. For these reasons I be- 
lieve in giving rewards to those who 
beat their own records, or to divide 
salesmen into classes according to their 
abilities—just as golf players are 
grouped in four divisions. These give 
every salesman a chance to win. 

We use three “Comparative Sales 
Standings” sheets! One for specialty 
salesmen selling to premium, adver- 
tising and incentive-use buyers. One 
for those selling to jobbers and deal- 
ers. The third for those selling in- 
stallations of Auto-points for official 
organization use. 

We mail these sheets on Thursday 
of each week so that each salesman 
can make his own analysis during the 
weekend. The “Anticipation Sales 
Questionnaire” is, of course, mailed 
once a month. 


Treat Men as Individuals 


To gain the best results, it is obvi- 
ous that each salesman should be in- 
dividually directed to the extent found 
practical. This is why I dictate indi- 
vidual letters to the salesmen, each 
worded according to the type, educa- 
tion and characteristics of the individ- 
ual. I try to tailor these letters to the 
salesman’s personal experiences and 
problems. Sales may or may not be 
mentioned. Without forcing the issue 
I try to make an answer necessary. By 
reading between the lines of the reply 
I often obtain valuable suggestions as 
how further to aid the individual 


salesman. This adds to the morale. 
A high morale is never of fortuitous 
development. Always it is mainly cre- 
ated by an executive who has imagina- 
tion, understanding, sympathy, diplo- 
macy, integrity of word, honesty of 
purpose—and the rare ability to in- 
spire men. 

Assuredly the sales manager, in di- 
recting his organization, is not deal- 
ing with a machine. Neither does he 
command the group ev masse. I be- 
lieve this latter impossible. He must 
deal with individuals. With Jim, Bill, 
George, Henry, and others who all 
stubbornly refuse to exhibit a desired 
reaction to any uniform or standard 
handling. 

They differ as black differs from 
white. They range from suave to 
pleasingly rough—from plain, hard- 
boiled and likable pluggers, to artfully 
hypnotizing diplomats. And by na- 
ture they are astonishingly variable— 
hard-headed, romantic, sensitive, sen- 
timental, hot-headed or mild-man- 
nered, open as a show-window, in- 
scrutably reserved, or temperamental 
as a Latin diva. 


Sales Manager, Know Thyself 


It seems reasonable to believe, there- 
fore, that if a sales manager is devoid 
of understanding, sentiment, enthusi- 
asm and imagination—his knowledge 
of morale and how to build it up will 
be restricted mainly to its definition as 
given in the dictionary. Certainly he 
will be unable to pass on to his men 
that subtle mental intangible, which 
he, himself, does not understand. 

If he cannot inspire his men with 
a genuine desire to write their names 
higher on the sales standings sheet, 
and mainly because of that honor 
alone— 

If he cannot fill them with the 
sporting urge to show the other sales- 
men of the force just what real sell- 
ing looks like— 

If he cannot through oral or 
written word put determination into 
their brains to go out and, in the teeth 
of the toughest competition, make 
stubborn prospects sign for more 
goods— 

If he cannot aid his men in de- 
vising definite and practical means for 
increasing the old B. R.— 

Why, then—void, futile and falla- 
cious will be the sales manager's 
pleadings for more sales action—his 
dire threats of impending discipline— 
his dictated announcements of ‘keen 
disappointment” in the home office 
and the displeasure of the big bosses— 
his offers of reward and bonuses—and 
even his most lusty and stentorian bel- 
lowings of ‘Go get it, go-getters!” 


SALES MANAGEMENT 


When You Strike a Dead End 


LL of us have had ex- 

perience with the pros- 

pect who, after long 

and careful cultivation, 
time and time again balks 
just this side of the dotted 
line. The salesman may 
know in his heart that the 
buyer needs the product. He 
is convinced in his own mind 
that he has made a well- 
rounded, capable sales presen- 
tation. He has been able, at 
least, to make the prospect 
listen attentively. But on 
every call he butts smack up 
against the same discouraging 
dead end: No order. And 
he feels baffled because he 
simply can’t put his finger on 
the reason why he has failed. 


I know one salesman who 
worked on one man for 
nearly two years in an attempt 
to get an order for advertis- 
ing space. After dozens of 
calls, in each one of which 
he had hammered home one 


specific, important point— 
with no results—he went 
back again, with just 26 


words to say. These were 
the words: “You know my 
whole story. I haven’t sold 
you. This time I have only 
one question to ask: Will you 
now give me a signed order?” 


He got it! 


One thing to do, then, is 
to keep on asking for the 
order on the chance that the 
man really is sold but won't 
give you the satisfaction of 
saying so. Another is to 
challenge the buyer. Even 
the toughest buyer secretly 


in Selling 


BY BRUCE CROWELL 


Ewing Galloway 


admires any salesman who re- 
fuses to be licked. Here's 
the way one man did this: 


“Mr. Pecksniff, I’ve been 
calling on you for 18 months. 
I haven’t sold you—but I still 
think I can do you a service 
by selling you. You need my 
product. You're a difficult 
man to sell, because you never 
openly state your objections? 
Will you do this for me? 
If I’m going to be licked on 
this account I'd like to know 
the reason why, because it’ll 
teach me a valuable lesson in 
salesmanship. On the other 
hand, if you're still open to 
be sold and are not buying 
because of some objection 
you've failed to state plainly, 
will you state it now and give 
me a sporting chance to an- 
swer it?” 


Now, there are very few 
buyers who, thus challenged, 
can very well get out of do- 
ing what the salesman wants 
them to do. Because of its 
superb diplomacy and direct- 
ness, neither can they be an- 
gered by it. And best of all, 
in such a sally, the salesman 
still retains control of the in- 
terview—the most important 
point of all in dealing with 
the tough guys. 


Whatever you decide upon 
as your last-resort tactics, re- 
member these fundamentals: 
Never give a sign that you 
believe you're hopelessly de- 
feated. Never degenerate to 
the status where you're beg- 
ging for an order. And hold 


your temper in a crisis. 


Reprints of this page are available at three cents each, remittance with order. 


FEBRUARY 15, 1937 [299] 


U.S. Government and A.M.A. Enter 
California—Florida Citrus Fight 


A.M.A.’s Journal declares there is no scientific justification 


of Sunkist’s “22% more” claim. . . . Most media men stand 


pat on refusal to take competitive copy, and an act-of-God 


freeze in California tops off the fruit growers’ current 


advertising and marketing troubles. 


ONTROVERSY between Cali- 


fornia Fruit Growers’ Ex- 
change and Florida Citrus 
Commission over the adver- 


tised statement of the former group 
that its Sunkist navel oranges are 
22% richer in vitamin C than Flor- 
ida oranges” swung into a new stage 
during the last fortnight with investi- 
gation and reports by divisions of the 
Federal Government and the Ameri- 
can Medical Association. 


In its issue of January 30, the 
Journal of the A.M.A. not only cited 
recent findings of the laboratory of the 
Bureau of Home Economics, United 
States Department of Agriculture, but 
injected, editorially, some thoughts of 
its own. 

The Bureau of Home Economics in- 
vestigators evaluated the relative pro- 
portions of vitamin C by determining 
the cevitamic acid content in milli- 
grams per cubic centimeter of juice of 
fresh Valencia and navel oranges 
grown in California and of fresh 
Valencia and pineapple oranges grown 
in Florida. 

Respectively, it was found that these 
four varieties contained .40, .58, .45 
and .51. 


“There appears,” said the Journal 
of the A.M.A., “to be no justification, 
therefore, in this unbiased report to a 
claim that the oranges grown in Cali- 
fornia provide 22% more vitamin C 
than do Florida oranges, because the 
variety of orange, as well as the local- 
ity in which it is grown, must be 
considered.” 

This latest of a long series of un- 
civil wars between California and 
Florida began December 3. On that 
date the California Fruit Growers Ex- 
change departed from its 30-year-old 
policy of “educational” advertising, 
during which it has been the primary 
factor in multiplying the nation’s 
orange consumption, to talk specifically 


[300 } 


about its own and Florida's oranges 
and to name names. 

There were two reasons. One was 
that the California group had found— 
or thought they had found—after two 
years of independent laboratory study, 
that Sunkist navel or Winter oranges 
are 22% richer in vitamin C than 
Florida oranges. The other reason was 
that the Florida interests, then starting 
their second annual all-state-grower 
campaign through the Citrus Commis- 
sion had made considerable progress 
the previous year, largely on a “‘one- 
fourth more juice” theme. (Florida 
did not mention California specifically, 
however, in this connection—though 
the implication was there.) 

Florida's $450,000-a-year advertis- 
ing, it appeared, had been more effec- 
tive, proportionately, than California’s 
$2,000,000. 

Closer proximity of Florida to the 
large eastern and middle-western mar- 
ket was a factor. But Florida also 
was capitalizing on the pioneering 
work which Sunkist had been doing 
for a generation. Florida, spending 
the bulk of its money in about 75 large 
city newspapers east of the Mississippi, 
was making effective raids, and per- 
haps permanent conquests in_ these 
areas. 

Sunkist has always used various 
media, but probably has spent more 
money in magazines than anything 
else. 

This Winter, in connection with in- 
troduction of the ‘‘vitamin C’’ theme, 
Sunkist decided to spend the bulk of 
$650,000 appropriated for navel or- 
anges in the markets in which Florida 
has been so aggressive. Forty-eight 
newspapers in 34 eastern and middle- 
western markets were to be on the 
schedule. 

Sunkist, however, it seems, did not 
reckon with the policies of newspapers 
with reference to specifically disparag- 
ing copy. Macy’s may say in any 


‘ 


NEW YORK WOMEN VOTE 


“SUNKIST ORANGES 
BEST FOR JUICE!” 


sali Ornia Seedless Nave Is 
( fi 

é 
Crdict Over 


Florj 


Guild “OM alion 
“ 408 Samar 
“Titan Hy 

T coo , pital 


Perated y 


St. Mary's 


"l Cities o: 
Women ') make 
itke con 
PUNAISt Nayvels ind Fle 
d Ploy 
} Set Where. Wome, 
Ph 1D Vated th 
this Navel Ora, es y z 
or Tiehine nie oe 
wad Heyor — teak 


hist Calis 


ort ia N 
Oranges a 


“true HH, uth 
0k for the on 


~When You 


buy. Lo 
Pre te mark on the skis 


In VITAMIN £ 


REPORTS 
NEw Yor« 
‘ABORATORY 


Sunkist 


KYeatksfZ, f / 
< 441i Jr 
ACUAMNGES 


Now Seedless! 


One New York magazine ran the copy, 
and Sunkist boasted... . 


newspaper, for example, that this is a 
“better coat for $24.95,”’ but no news- 
paper would accept the assertion that 
this is a “better coat than Gimbel’s 
(or Lord & Taylor or Bloomingdale's) 
could sell you for $24.95." The sum 
of it is, according to the censorship 
standards set by all large newspapers, 
that the only time you can mention 
your competitor by name is when you 
may decide to praise him. 

Sunkist found that many newspapers 
could not run the copy. It would be 
all right to say “22% richer in vita- 


SALES MANAGEMENT 


once a aS 


alae eens Mn 


ee 


A See war 


aves ee Se et 


pee 7 


min C.” Even the Sun, the Times or 
the Herald Tribune would carry that. 
But the addition of “than Florida 
oranges” was taboo. 

The exchange stood pat. No™.... 
than Florida oranges,’ no schedule. 

Most of the newspapers also stood 
pat. The Hearst and Scripps-Howard 
groups turned it down. So did the 
Gannett Newspapers. The Chicago 
Daily News caught the first insertion 
and pulled it, after a couple of edi- 
tions. . 

California claimed that of 64 news- 
papers to which the copy was sub- 
mitted, more than half ran it. Florida 
made a survey and could find, of 108 
newspapers, only eight which ran it. 
Apparently, California, unable to get 
its intended list, approached other 
newspapers, with some success. But 
not enough. 

Florida squawked, but California 
was adamant. Unable to get the news- 
papers in those strong, large city 
markets, California went after other 
media. “A newspaper magazine” ran 
one ad with “. . . . than Florida or- 
anges,” it was said, but refused to run 
more. The large weekly and monthly 
magazines would not touch it. One 
New York magazine ran the copy, and 
California forthwith boasted about 
that. 


The Retort Discourteous 


California had better success in car 
cards and outdoor. Subways accepted 
double, over-exit cards which socked 
Florida twice at once. The headline 
is “Sunkist Health Oranges for 
Juice.” (Taking the words right out 
of Florida’s mouth!) Supplementary 
copy says: “Leading laboratories re- 
port that the juice of Sunkist navel 
Oranges averages 22% richer than 
Florida orange juice.” 

Just why the Barron G. Collier in- 
terests, which control the subway as 
well as most of the other car cards in 
the country, accepted this copy, is not 
known. Mr. Collier is said to own a 
county or so in Florida. He is one of 
the “biggest” men there. Florida 
people tell SM that they’re sore as hell 
about this ‘‘unneighborly’”’ attitude. 

The Florida mention in Sunkist 
copy runs in outdoor posters, but not 
in spectaculars. 

It should be said though that, de- 
spite the fact that Florida has refrained 
from mentioning California, it has 
done its part to provide provocation. 
A recent Florida newspaper ad was 
headed “Florida’s Challenge.’ It em- 
phasized the old theme of “‘one-fourth 
more juice.” Because Califorina has 
for so long been active in making 
“California” and “oranges” synony- 


FEBRUARY 15, 1937 


mous, a non-specific contrast with 
them can do more damage than if 
California employed the same technic 
against Florida. 

The Journal of A.M.A. poured a 
bit of extra salt on California’s wounds 
by pointing out that “it is the opinion 
of the government investigators that 
the volume of juice per orange is also 
a factor worthy of consideration. The 
California navel orange yields less 
juice than do other varieties of the 
orange of equal size.” 

The greatest blow to California 
pride and profits, however, came not 
from Florida, nor from the news- 
papers, nor from the government, nor 


even from Dr. Morris Fishbein, editor 
of the Journal of the American Medical 
Association . . . but from the weather. 
Frost last month ruined a good part 
of California’s navel orange crop. The 
advertising program has had to be cur- 
tailed. 

Florida, on its part, wants to be 
friendly, and helpful. ‘We don’t want 
to kick them when they’re down,” a 
Florida representative told SM. “We 
want to forget it.” 

Perhaps, next year, there will be an 
interesting campaign for Califloritexas 
oranges, with more juice than you ever 
dreamed possible—and fairly alive 
with vitamins! 


Marketing Flashes 


Gadget for the Absent-Minded—Texaco Boils — 
Big Figures—A Successor to Jig-Saw Puzzles? 


Clock Watcher 


“Use a Clock Watcher and you 
won't have to be one,” advises M. H. 
Rhodes, Inc., New York, maker of 
““Mark-Time” devices, in its first con- 
sumer announcements. A boon for 
people with poor memories, an elim- 
inator of dark smoke clouds and burnt 
smells from ovens, the Watcher may 
be set for any desired period. A 
musical chime warns that the pudding 
is done, the laundry washed, baby’s 
nap should be over, or whatever. 

“When you buy a new range or 
washer be certain that it is equipped 
with a genuine Mark-Time” continues 
the copy, prepared by Arthur H. Ful- 
ton Co. and inserted in national maga- 
zines, mostly women’s. About three 
years old, the timer has not heretofore 
been offered to the public, though 
range and washer manufacturers have 
adopted it as standard or optional 
equipment. 


It “dings” when time is up. 


Rhodes devotes smaller space in its 
ads to its automatic switches that turn 
radios, sun lamps, roasters off; and to 
a light switch that “holds the light 
until you get safely from garage to 
house” or tie the pajama strings and 
climb between the sheets. 


National Means Local 


To a small town dealer the surge 
and thunder of a national ad campaign 
seems far away. Yeah, those hand- 
some color pages the salesman unfolds 
look mighty nice, and the millions of 
circulation he recites sound big, too 
big for a little place like this town. 
Overcoming this mental attitude and 
boiling down rows of zeros so that a 
local retailer can grasp them is one of 
management’s numerous vexations. 

The Texas Co. tackles the problem 
in The Texaco Mission, its house 
organ for service station dealers. Ray- 
mond Browne, advertising manager, 
explains: 

“ ‘National’ advertising is simply 
‘local’ advertising everywhere at the 
same time. 

“Right in your own town, the Texas 
Co, advertises every month in the year. 
To the Texas Co. this advertising is 
national. To the Texaco dealer it is 
local. 

“Sometimes a dealer does not know 
how much local advertising he is actu- 
ally getting. . . . Let us take an actual 
case, which is fairly typical. The town 
of Little Rock, Ark., has a population 
of 81,000 white families. It has 15,- 
913 passenger cars registered. How 
much of Texaco’s ‘national’ advertising 
is local in the town of Little Rock? 

“There is a new booklet just printed 

(Continued on page 382) 


r301) 


BY 
LAWRENCE M. 
HUGHES 


Dey _ Brothers, 
N. Y., store plays up “Crown 
Tested Rayon Fabrics” in 
this corner of its women’s 
piece goods department. On 
the wall at rear are replicas 
of the Crown seal used on 
all textiles and manufactured 
garments. 


Crown Rayon Sections in 60 Stores 


Help Viscose Co. Sell Tested Quality 


APID development of rayon to 

a point where it now surpasses 

apparel wool and silk and is 

surpassed only by cotton in 
sales volume is a story of striving for 
and promotion of ‘‘quality.” 

It is a story of overcoming, in 25 
years, habits and prejudices centuries 
old. Of proving that machines can 
take spruce chips and cotton linters, 
and with the help of science, style and 
sales management, do at least as good 
a job as the silkworm, the sheep or 
the cotton plant. 

In this period rayon has shown itself 
to be versatile, fashionable and trust- 
worthy. 

Pioneer of rayon in America and 
for years consistently the largest pro- 
ducer has been the Viscose Co. Vis- 
cose has won this position not only by 
emphasizing but insuring quality. 

Last year was the company’s 25th 
anniversary. Its production of Crown 
Rayon yarn increased from 362,544 
pounds in 1911 to 10,004,126 pounds 
in 1920; from 62,637,847 in 1929 to 
92,094,491 in 1935. Last year Crown 
Rayon production went above 100,- 
000,000 pounds. 

The first 15 years were concerned 
largely with methods of producing 
rayon. Since 1930 the Viscose Co. 
has concentrated primarily on insuring 
consumer satisfaction in finished mer- 
chandise made of its yarn product. 


{302} 


Viscose demonstrates that the “special department” idea for 


getting goods featured by big-name retailers is highly effec- 


tive in achieving big sales increases and inducing salespeople 


to do a better job of educating the public to a better under- 


standing of synthetic fabrics. 


In that year was launched the Crown 
Quality Control plan. 

Crown Rayon yarn is consumed in 
fabrics that find their way into various 
types of merchandise—piece goods, 
women’s and children’s ready-to-wear ; 
underwear for men, women and chil- 
dren; upholstery, curtain and drapery 
materials; men’s ties and mufflers, and 
many dress accessories. 

Producing a basic yarn, Viscose sells 
to weavers, knitters and converters. It 
now has 96 manufacturing licensees. 

The Quality Control plan was 
adopted to keep the products manu- 
factured by these companies up to a 
definite standard. These products then 
went through the channels of distribu- 
tion to the consumer bearing the mark 
of “Crown Tested Quality.” This 
identification the Viscose Co., the 
manufacturers and the stores have pre- 
sented consistently in their advertising. 

It should be emphasized, said John 
A. Spooner, merchandising director of 


Viscose Co., that the tests of products 
of licensee manufacturers have been 
made from the start by the retailers’ 
own \aboratory—the Better Fabrics 
Testing Bureau, official laboratory of 
the National Retail Dry Goods Asso- 
ciation. 

Drapery, upholstery and curtain fab- 
tics are tested, for example, for fabric 
construction, fabric purity, tensile 
strength, color fastness to sunlight, dry 
cleanability or washability, and all- 
‘round wearing satisfaction. 

Fabrics for dresses and intimate ap- 
parel are tested on similar bases—with 
the addition of color resistance to per- 
spiration and resistance to fraying. 

Prospective licensees whose products 
pass these tests are given a certificate 
entitling them to use the Crown Tested 
Quality insignia. This certificate bears 
the signature both of an executive of 
Viscose Co., and of Better Fabrics 
Testing Bureau. 

Store executives recognized the value 


SALES MANAGEMENT 


Syracuse, ° 


rasa 


On right a corner of the “Crown Tested” 
curtain and drapery section of R. H. 
White Co., Boston, where ads, clerks and 
store displays have concentrated on 
boosting rayon fabrics. 


Strawbridge & Clothier, Philadelphia, was 
first to install a special section devoted 
to “Crown Tested Rayon” piece goods. 
Its lead was followed by 30 major depart- 
ment stores within the first year. 


of this mark and have used it increas- 
ingly in promotions as a guide to rayon 
merchandise of proved merit. 

A recent development along this 
line has been the establishment of sep- 
arate Crown Tested Rayon sections in 
piece goods and curtain and drapery 
departments. 

This policy was first adopted by 
Strawbridge & Clothier, Philadelphia, 
in March, 1935. It grew in that year 
to embrace 30 major stores throughout 
the country. In 1936 the number was 
nearly doubled. 

In less than two years Strawbridge 
& Clothier has found that the separate 
section and the more intensive promo- 
tion has trebled its annual volume in 
Crown Tested Rayon. Other stores 
report similar progress. 

Some of the stores which have 
established Crown Tested piece goods 
departments are Abraham & Straus, 
Brooklyn ; Broadway Department Store, 
Los Angeles; Famous-Barr, St. Louis; 


FEBRUARY 15, 1937 


R. H. White, Boston; Lansburgh 
Brothers, Washington, D. C.; Kauf- 
mann’s, Pittsburgh; Hochschild, Kohn 
& Co., Baltimore; Mandel Brothers, 
Chicago; Emporium, San Francisco; 
The Golden Rule, St. Paul; the May 
Co., Los Angeles and Cleveland; the 
Boston Store, Milwaukee; Denver Dry 
Goods Co., Denver; Kresge Depart- 
ment Store, Newark; William Hen- 
gerer Co., Buffalo; Wolfe & Marx, 
San Antonio; Meier & Frank, Port- 
land, Oregon. 

Some which have established sep- 
arate curtain and drapery departments 
are L. Bamburger, Newark; Mandel 
Brothers, Chicago; Golden Rule, St. 
Paul; Adams, Meldrum, Anderson, 
Buffalo; Schuster’s, Milwaukee, and 
McCurdy Co., Rochester. 

Here’s what some of the stores say: 

Schuster’s, Milwaukee, which set up 
separate Crown rayon curtain and dra- 
pery sections in its three stores, re- 
ported “very decided” increase in 
drapery business in the first year and 
“unusually successful” promotion of 
curtains. 

Outlet Co., Providence, stressed the 
“high quality” of these fabrics, ‘‘as to 
washability, wearability and color fast- 
ness” and pointed to a “good deal of 
return business already from very satis- 
fied customers” in the first three 
months of its separate Crown piece 
goods department. 

Lansburgh & Brother, Washington, 
established a Crown Tested Rayon sec- 
tion adjoining its silk department. 
“Since its establishment we have en- 
joyed a wonderful increase in the sale 
of rayon fabrics, especially in those 
that are Crown Tested.” 

John Gerber Co., Memphis, empha- 
sized the work of Viscose in creating 
a “better understanding of synthetic 
fabrics in general.” 

Wolff & Marx, San Antonio, said 
that “this section has materially im- 


proved our sales of rayon fabrics.” 

Strouss-Hirschberg Co., Youngs- 
town, is “promoting only rayons that 
are Crown Tested quality.” 

Abraham & Straus, Brooklyn, ex- 
pressed its “firm belief in Crown 
Tested fabrics.” These have “in- 
creased our business and eliminated 
most of our rayon ills.” 

The stores with Crown Tested sec- 
tions are especially active, of course, in 
promoting tested fabrics made from 
Crown Rayon in displays and news- 
paper advertising. Also the sections 
are their own advertisements—each 
bearing the sign “Crown Tested Rayon 
Fabrics” and the disc mark of Crown 
Tested quality in white or gold against 
a black circle. 

Miss Pauline P. Alper, advertising 
manager of the Viscose Co., showed 
SM one recent week’s total of news- 
paper advertisements, featuring Crown 
Tested fabrics, by the separate-section 
stores. It totaled 1,708 column inches, 
or 23,912 lines. Total circulation was 
11,470,800. 

(Separate Crown Tested section ad- 
vertising is only a small fraction of the 
millions of newspaper lines which hun- 
dreds of stores use yearly on Crown 
Tested Rayon fabrics.) 

Local separate-section advertising is 
paid for mainly by the stores. The 
Viscose Co.'s work is concentrated in 
national and trade paper advertising 
and in helping the stores to establish 
effective sections. A portfolio of ad- 
vertising ideas, with illustrations avail- 
able, without charge, in mat form, is 
prepared annually for them. 

The sections are set up by the stores, 
Mr. Spooner explained. All they ask 
for is ‘educational’ and sales promo- 
tional help. Some of them send 
“Crown Tested supervisors” to the 
Viscose Co., at New York, for instruc- 
tion. 

(Continued on page 379) 


[303] 


Paint Manufacturer Finds 
Robinson-Patman Act Is 
a Boon Instead of Bane 


This largest maker of water paints, in con- 
forming to the price maintenance law, is able 


to scrap unprofitable accounts and revise 


unsound trade practices. 


O the Reardon Co., largest 

manufacturer of water paints in 

the U. S., the Robinson-Pat- 

man Act is proving not a hamp- 
er, but an opportunity to realign and 
tighten its distribution set-up and price 
structure. The changes it makes will 
undoubtedly affect the policies of 
many of the other manufacturers in 
this field—some 52 in all—since 
Reardon, with plants in Chicago, St. 
Louis and Los Angeles, has been sell- 
ing 49.6% of all cement paint and 
22% of all casein paints made in this 
country. Placed as it is in a position 
of outstanding leadership, many small- 
er companies naturally follow it in 
matters of price, policy, etc. 

When the Robinson-Patman Act 
came along, and had to be taken into 
account, Reardon desired to conform 
and follow the law to the letter. It 
was apparent that the paint industry, 
like many other industries, would have 
to take a cinch in its belt and tighten 
up on a number of trade practices 
which, during depression years, had 
grown somewhat lax. 

One of the first things that Rear- 
don did was to send out a question- 
naire to its trade. This was nothing 
new to Reardon. For 20 years it had 
followed a custom of sounding its 
customers in this manner whenever 
any problem bobbed up. It has fol- 
lowed this system even to the selec- 
tion of colors for its color cards. 

The recent questionnaire was very 
simple. Under the law a manufac- 
turer can select its customers and can 
maintain its resale prices. The ques- 
tionnaire sounded Reardon wholesalers 
on the desired mark-up and asked how 
and to whom they were selling. A 
representative of SM recently called 
upon R. E. Reardon, vice-president in 
charge of the Chicago plant, to inquire 
about the results of the questionnaire 
and how it affected the company’s mer- 
chandising operations. 


{304} 


Reardon’s new 
“Water Paint Depart- 
ment,” valued at $60, 
is moved into any 
worth while store 
and set up as a unit. 


He stated that approximately 4,000 
questionnaires were sent out and that 
about 3,200 of them were returned 
properly filled in. As a result, based 
upon the desires of the majority, the 
mark-up to dealers was reduced from 
50% to 331%4% and the resale list, 
formerly 214 times distributors’ cost, 
was reduced to 2 times distributors’ 
cost. 

Further it was learned that the Rear- 
don line was being disposed of as fol- 
lows: 

To wholesalers and manufacturers 
who sold to dealers and contractors, 
65 to 75%. 

To those catering to 
maintenance, 15%. 

To the retail trade, the remainder. 

The company has always confined 
its sales to jobbers and dealers; never 
to industrials or the consuming trade. 
The result was that Reardon immedi- 
ately checked from its customer list 
all those who catered to the retail 
trade. The results were: 

1. It reduced the total numbers of 
its customers between 12 and 15%. 

2. It concentrated upon the whole- 
sale business, meaning its better and 
more profitable customers. 

3. It reduced a three-price-list sys- 


industrial 


BY 


LESTER B. 
COLBY 


tem to a two-price list system by elim- 
inating its jobber or semi-jobber list 
with its series of discounts. Today the 
company issues only one price list to 
authorized wholesalers and its sug- 
gested resale price list in effect in the 


particular territory in which the 
wholesaler is located. 

The simplicity of this new set-up 
of prices is indicated by the following, 
clipped from the two current lists: 

From the authorized wholesalers’ 
list : 


Modex—The Modern Casein Paint 
300-lb. 100-Ib. 25-Ib. Cases of 10 


Bbls. Drums Drums 5-lb. Pkgs 

Cwt. Cwt. Cwt. Cwt. 
White ....$ 9.50 $10.00 $10.50 $11.00 
Colors .... 10.50 11.00 11.50 12.00 


From the local zone suggested resale 
price list: 
Modex—The Modern Casein Paint 
Dealers Contrac- Retail 
Lb. tors Lb. lo 


300-lb. Bbls., White ..$0.13%4 $0.16% $0.19% 
Colors .. .14% 1814 21% 


100-lb. Drums, White.. .14% 17% .20% 


Colors... .15% 19 .22% 
$25-lb. Drums, White... .14%4 .18% 21% 
Colors.. .16% 20 -23% 
5-lb. Pkgs., 
10 to Case: Pkg. Pkg. Pkg. 
EE Sapa -76%4 95% 1.14 
Se wacesews 833% 1.0334 1.24 


The general plan of mark-up fol- 
lows closely the desires voiced in the 
questionnaires and approximates: 


Se BOE CIES cris ccawcceceenes 33.44% 

To contractors and industrial maintenance 
Oe, Ce DE i.c6yicsdatacwecewons %% 

To retail buyers, over COSt........-.0-. 100 % 


The mark-up is calculated on f.o.b. 
factory prices, plus the average freight 
rate to the trading zone in which the 
wholesaler is located, which is added 

(Continued on page 342) 


SALES MANAGEMENT 


c& 


Se 


POPULATION DENSITY 


COVERAGE 
INTENSITY G2 


U.S. SALES MAP 


a THE 48 STATES PROPORTIONED TO DOLLAR VOLUME OF RETAIL SALES 
/ ~_____ Somree: US. CENSUS OF RETAIL DISTRIBUTION 1933 


tana y= h 
i } i > 


f 
s 


T 
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| o SALES - 
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| PENNSYLVANIA | TEN \ 
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oO" SALES | na TENNESSEE Sas Rein | | i 


| NEW YORK MASSACHUSETTS 
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Oe ee i ia T. oF COL MARYLAN 
new TEXAS LA. | MISSISSIPPI ALABAMA ses as gas 


' 4 ' 
Ante | a; 7 NORTH CAROLINA — = 
_ SOUTH CAROLINA f eer 
GEORGIA 
 RLORIOA : 
\ X wd raSrOciAn SOA WEMLPOPAS at 
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@ The Twenty-State area of the Northeastern section of the country embraces 
60% of the population and 67% of all retail sales . . . and concentrated in this 
area is the all-embracing circulation of the Metropolitan Group, from 6,500,000 
to 8,000,000* families. 


* With additional or alternate papers. 


Metropolitan Comics eckly 


Color 


METROPOLITAN 
SUNDAY 


NEWSPAPERS, Inc. 
MEW YORK - CHICAGO 


THE LARGEST CIRCULATION IN THE WORLD—FROM 6!/,, TO MORE THAN 8 MILLION FAMILIES 


FEBRUARY 15, 1937 [305 } 


e Additonal or alternate popers 


Boston HERALD-Buffo/o COURIER-EXPRESS 
Detroit FREE PRESS-New York HERALD TRIBUNE 
5t Louis POST-DISPATCH —Washington POST 


@ Baltimore SUN- Boston GLOBE -8uffolo TIMES ~Philadelphia INQUIRER 
Chicago TRIBUNE- Detroit NEWS -New York NEWS ~Pittsburgh PRESS 
Cleveland PLAIN DEALER-S¥ Lows GLOBE -DEMOCRAT-Mashington STAR 


A field scout with field glasses re- 
ports a Pennsylvania Railroad calendar 
hanging on the wall of a New York 
Central executive, a traditional rival. 
It may be some of that new brother- 
hood-of-man stuff; or it may be wish- 
ful symbolism—the New York Central 
hammering the Pennsy to the wall. 

ee 


Effectiveness Report: One Ralph 
Burdick inserted a classified ad in a 
Miami paper, with copy as follows: 
“Listen—I’m lazy, hate to work, I'm 
none too honest, must have short hours 
and decent salary; prefer chauffeur’s 
position; don’t want to work, but have 
to.” He got 17 offers of a job, seven 
of them as chauffeur. 

* * & 


Another sleuth reports a K-9 Ani- 
mal Hospital at 240 West 72nd Street, 
New York. A doggy dispensary, no 
doubt. 

* ok of 

I think I mentioned here last year 
that the battleship Maine was sunk in 
Havana Harbor on February 15, 1898. 
We kids wore celluloid buttons read- 
ing: ‘Remember the Maine—to hell 
with Spain.’’ I wonder now if the 
Fates didn’t take that curse too seri- 
ously. None of us wished Spain that 
much hell. 

* ok * 

Slogan for Heinz Ketchup: ‘‘Put it 
over the plate.” 

* * & 

Simile to replace that old one about 
two peas in a pod: “As alike as two 
Japanese.” 

* * * 

Conversation Piece by Chevrolet: 
“I'm all for its high-compression, 
valve-in-head engine . . . saves me a 
lot of money on gas and oil . . . and 
the whole family feels a lot safer in 
its new, all-silent, all-steel body with 
Solid Steel Turret Top and Unisteel 
Construction.” Do people really talk 
like that? 

* * * 

At last, there is a new version of 
the lover-in-closet theme. The travel- 
ing man wires his wife that he will be 
home the next day. Arrives, dashes 
into the house expectantly, hears man’s 
voice. Considers shotgun routine, but, 
on second thought, runs to next block 
to get wife’s father. The old gentle- 


{306} 


man counsels calm, saying there is 
usually an explanation for everything. 
Father-in-law returns with traveling 
man, saying: “Let ME talk to her.” 
Comes downstairs in few minutes, 
wreathed in smiles. “I £vew there 
was some explanation,” he says to out- 
raged son-in-law. “She never got your 
wire!” 
tO ¢ 
With my especial weakness for the 
play-on-words, I like that sausage 
headline: “Jones in January.” 
* ok 
Getting back to conversational copy, 
there is but a handful of copywriters 
in the business who may be entrusted 
with it. Study the smashlines of the 
movies that click. Study the short 
story. Listen closely to human beings 
talking in the subway, at the ball 
game, in the theater lobby. If you 
don’t have. a positive flair for natural 
conversation, don’t attempt it in an 
advertisement . . . don't! 
* ok 
If a certain loud-mouthed traffic cop 
(you probably have a candidate) 
would sit down and ponder how easily 
he could be replaced with an automatic 
traffic light, it might take some of the 
conceit out of him. 
**# 


“Daily Smile Wins $500 for Wait- 
ress in Will.”—Headline. Dale Car- 
negie preaches that sort of thing in his 
swell book, mentioned recently by our 
own Maxwell Droke. 

* * * 

Label for a trusting soul: “Suitable 
for framing.” 

* * & 

By the time this issue of SM hits 
the mail-sacks, I shall know how I 
came out in Mid-Week Pictorial’s pic- 
ture contest. You remember the grim 
photograph of two Spaniards leading 
another Spaniard to certain doom at 
the hands of a firing squad. A fair 
title might have been: “Eliminating 
the Middle Man,” but it was no place 
for levity. I sent in an ironical title, 
reminiscent of the tourist folders of 
another year and indicative of the 
futility of a civil war: “Sunrise in the 
Sierras.” I'll let you know. 

- 

A & P denies any attempt to belittle 

advertised brands. For a minute, I 


thought “A & P” stood for ‘“Adver- 
tised & Private,” with the accent on 
the latter. 


* * * 
Sometimes it seems to me _ that 
studio audiences will laugh at any 
joke, however bewhiskered; will ap- 


_plaud any song, however badly sung. 


Sponsors need a better gauge than this 
simpering claque. 
* * * 

By this time, it may be said that 
General Motors’ Alfred Sloan knows 
his unions. 

x * & 

Incidentally, it wouldn’t be cricket 
in the steel business to strike while 
the iron is hot. 

+ oe 

Thanks to The Literary Digest, 1 
now know the medical reason for my 
dread of overnight trains. I have 
“siderodromophobia,”” which means 
“dread of railways.” It is one of a 
long list of unpronounceable names 
which the medical profession has 
thought up, which that increasingly 
interesting news-weekly has compiled. 

_ 


I have also smoked out one of the 
chief reasons for the success of two 
very dynamic salesmen of my acquaint- 
ance: They get plenty of sleep! I 
proved it by telephoning their homes 
at what I thought was a reasonable 
hour, having their families report they 
had retired for the night. 

* 2's 

“We learn you to drive automo- 
biles,” said a sign in a small town I 
was passing through. This may ex- 
plain many hazards of the road. 

* * * 

America continues to be a nation of 
phrase-makers. Our Assistant Secre- 
tary of War referred to the threatened 
world conflict as an “adventure in 
suicide.” “Cancers of injustice” is the 
latest one tossed off by the President. 
How about one to cover the strike 
situation ?—‘‘Tumors of turmoil.” 

* * & 
. ‘Air France to Put World’s Largest 
Land Plane into Service Next Spring. 
Winter Garden, Bar, and Library to 
Be Features of New Ship.’’—News 
item. Hey, hey! 
ko * * 

Apropos of nothing, it occurs to me 
that the phenix, that mythological bird 
that rose from its own ashes, was 
probably a smoked heron. 

. = = 

It was new to me, as it was to Jack 
Coffey who sent it in. Two customers 
were discussing “Othello” during in- 
termission. ‘I don’t like this show,” 
said one. “All it is, is a bunch of 
quotations!” 

T. HARRY THOMPSON 


SALES MANAGEMENT 


OG COMPANIES. & PROBLEMS 


| seo 


Eleven teletypewriters 
in cities throughout 
California help Golden 
State Company deliver its dairy 
products fresh. The company 
enthusiastically reports: ‘“This 
service has speeded up our 
transmission of orders, 
and expedited delivery of 
our perishable products.”’ 


Fashions are perishable 

products too. Neiman- 

Marcus Co. flashes new styles, 
new colors, and new fashion de- 
tails instantly and accurately 
between its New York fashion 
organization and Dallas 
store by teletypewriter. 
Dallas is better dressed, 
Neiman-Marcus happier. 


Armstrong Cork Co. 
isn’t floored by the need 


for speedy communica- 
tion among its manufacturing, 


laboratory, purchasing, and 
credit departments, and sales 
branches. Teletypewriters in ten 
key cities handle com- 
munications instantane- 
ously, and in type form. 


== The Truscon Steel Co. 

unifies its far-flung offices 
and plants by teletypewriter 
hook-up of 31 machines through- 
out the country. Aside from 
increased efficiency and swifter 
service for customers, Truscon 
says the teletypewriter Z Z 


has made possible large G : 
Z “a 


operating economies. 


large and 
co small, 
for fast, flexible, 


yards or 3000 miles 


the same connection, 
ny forms, with 


deliveries accelerated, 


Sentatives will hel 


How American Coffee Fights the 
Premium Appeals of Direct Sellers 


Fighting fire with fire, this New Orleans coffee manufac- 


turer uses a “money back” premium plan to offset the lure 


of the “advance premium” offered by so many house-to- 


house distributors. 


BY R. G. DROWN, 


NE of the most potent sales- 

builders utilized by firms 

selling by the house-to-house 

method direct to the consum- 
er, has long been the ‘‘advance”’ premi- 
um—-an article advanced to the house- 
wife at the time she makes her first 
purchase and “paid for” by her with 
credits accumulated through purchases 
made on subsequent calls. 

Combatting this premium plan has 
caused many an advertising manager 
and sales executive of firms selling 
through retail outlets—grocery and 
drug stores, particularly—considerable 
thought. It has proved itself one of the 


JR. 


strongest sales weapons at the command 
of those manufacturers and wholesalers 
who come in direct contact with the 
ultimate consumer. The principal ad- 
vantage, of course, lies in the fact that 
the salesman can offer the consumer an 
attractive and useful premium (or 
“gift” as he usually refers to it) as soon 
as she makes her initial purchase in- 
stead of asking her to save coupons for 
weeks or months or to pay part cash for 
the article she wants. 

This approach is hard for many 
housewives to resist, as sales figures of 
the leading manufacturers in this field 
will attest. And once the premium has 


Gertie and Dot 
“I said, ‘Well, if the law of averages says it’s past time for you to sell 
an Imperial Eight, we’d be perfectly safe in spending the commission 
on it tonight, wouldn’t we?’” 


[308 } 


been placed in the home and has been 
put into use there is naturally very lit- 
tle chance of that particular family dis- 
continuing the use of the produce in- 
volved until enough “credits’’ have 
been earned to “pay for” the item... 
and before this happy state is reached 
the wily salesman, if he is worth his 
salt, has again tempted the lady with a 
second equally beguiling premium. In 
which case she often accepts it and the 
process is repeated all over again. 

The rather unwieldy coupon redemp- 
tion plan involving the saving of 25, 
50, or 100 coupons packed with each 
can or jar of the product before re- 
demptions can be made, often fails to 
“click”’ with housewives who, attracted 
by some particular article, want it right 
away. The equally-prevalent “part 
cash” method of offering premiums 
also has one big drawback though in 
many ways it is doing a fine job for 
some of the nation’s largest and most 
successful premium-users . . . the con- 
sumer need purchase only one package 
—or at most a very few—of the prod- 
uct in order to secure the premium; and 
once the redemption has been made 
there is no reason for housewives to 
continue to buy unless a second and 
equally interesting offer is made. Few 
indeed are the premium buyers who 
can bat a thousand when forced to se- 
lect one item after another to attract 
consumers through this method. 


A Practical Solution 


All of which lengthy preamble 
leads us to the fact that something 
seems finally to have been done that 
enables the manufacturer who features 
premiums, but who sells through retail 
dealers rather than direct to the con- 
sumer, successfully to combat the ‘‘di- 
rect-to-consumer” distributor with his 
own peculiar adaptation of the ‘ad- 
vance’ premium method. 

It is manifestly impractical for a 
manufacturer, located hundreds and 
even thousands of miles away from 
most of his best customers, to have a 
representative call at the home of each 
consumer and offer a premium on the 
“advance” plan as explained above. 
Were he to attempt such a procedure 
he would automatically revert to the 
“direct-to-consumer’” class and could 
just as well sell his own merchandise 
while he was about it, thus eliminating 
his wholesalers and retailers entirely. 
Instead of personal calls, therefore, he 


SALES MANAGEMENT 


5~2@ 


2 
= 
~ 


HISOGO” CONSECUTIVE COPY 


On February Ist, 1937, O. F. Atteberry, Atoka, 
Oklahoma, took his 886th consecutive copy of 
~~ |i The Farmer-Stockman* from his mailbox. For 
30 years he has found it well worth while to keep 
his subscription alive. 


+ SNiNATINANNNE 


setnee 
tiied? 


7 


. oe Nor is farmer Atteberry’s case unusual for the 
90D pac Southwest. Witness the cases of T. W. Tanner, 
Rule, Texas; TT. S. Henderson, Aline, Oklahoma; 
oat \ aman J.T. Bain, Hedley, Texas, and scores of others whose 
1922 | a : habit of reading The Farmer-Stockman dates back 
ce more than 27 years. These folks have learned by 
experience that there is a reason why The Farmer- / Ws a 
Stockman has the biggest Oklahoma and Texas uae st 
lal circulation of any farm paper in the United States. Hut 


*Mr. Alteberry’s subscription dates back to the days of The 
Weekly Oklahoman, which in 1911 became The Farmer-Stockman, 


The FARMER-STOCKMAN 


Oklahoma City, Okla. 


THE OKLAHOMA PUBLISHING COMPANY 


THE DAILY OKLAHOMAN 
OKLAHOMA CITY TIMES 
RADIO STATION WKY 
MISTLETOE EXPRESS 


FEBRUARY 15, 1937 {309} 


must substitute another means of ap- 


proach. The American Coffee Co., 
Inc., of New Orleans, has bridged the 
gap through the use of its regular 
coupons packed with every package of 
coffee and tea that leaves its factory in 
the Crescent City. 

Though this southern firm does not 
claim the credit for having originated 
the scheme it has been employing for 
the past few months, it has adapted it 
to its own uses in a manner that has 
proved eminently successful. 

Each pound of Morning Joy, St. 
Charles, French Market and French 
Opera coffees and teas — all products 
of the American Coffee Co.—carries 
an “Acco” certificate offering a variety 
of premiums. Some of these—like 
Wm. Rogers silverware and LaVal- 
liere toiletries—are redeemable without 
cost with varying quantities of the cer- 
tificates. Others, principally alumi- 
numware and toys, require only three 
of the certificates for each redemption, 
together with a cash payment. 


New Slant on “Money Back” 


These certificates, showing the free 
premiums on one side and the arti- 
cles requiring cash on the reverse, have 
been packed with these particular 
products for the past few years. The 
silverware and toiletries, as a matter 
of fact, have been offered for some 20 
years. Lately, however, additional copy 
has been included in the explanation 
of the premium offers which adds con- 
siderable attractiveness to the offers 
and entitles them to rank with the 
“advance” premiums featured by 
house-to-house distributors in effec- 
tiveness and appeal. This brief piece 
of copy reads as follows: “Note! After 
you have received one of our premi- 
ums requiring a cash payment, con- 
tinue to save your ‘Acco’ certificates. 
When their combined value (at one 
cent each) is equal to the amount you 
paid for the premium, return them to 
us and we will refund that amount to 
you in cash.” 

This simply means that if the house- 
wife wants a streamline train, for ex- 
ample, such as the one the company 
featured during the past Christmas sea- 
son for three certificates and 87 cents, 
she simply sends three certificates from 
either of these brands of coffee or tea, 
or both, to the American Coffee Co. in 
New Orleans, together with the cash 
payment. She receives the train and 
continues to save her “Acco” certifi- 
cates until she has accumulated 87 
more of them. She may then send 
these to the company and receive a re- 
fund of 87 cents. The toy train will 
then have cost her nothing. 

Many of the advantages of this pre- 
mium plan are apparent at a glance. 


[310] 


It combines the most attractive features 
of the straight coupon redemption and 
the cash payment plans, in addition to 
binding the consumer close to the man- 
ufacturer in practically the same way 
as does the advance premium. The 
consumer need not wait to acquire 
whatever premium she particularly 
wants, but can secure it as soon as she 
has purchased three pounds of coffee. 
But the transaction is far from com- 
pleted when the three coupons (or 
certificates) are mailed to the company 
with the cash and the premium is de- 
livered. What housewife will neglect 
to continue to purchase the product if 
its quality and price are satisfactory, 
when she knows that by doing so she 
will be able to regain the entire cost 
of the premium article? 

The company values its coupons at 
one cent each, redeeming a premium 
that costs them 25 cents for as many 
coupons, so it represents no extra cost 
when a cash payment equal to the 
usual investment is substituted for the 
merchandise award. At the same time 
the offer of a cash refund is a con- 
stantly present guarantee of value and 
quality, keeping the consumer aware 
at all times that the company stands 
ready and willing to pay back every 
penny she has invested when the re- 
quirements have been fulfilled. This 
means that consumers are taught to 
have confidence in the products of the 
American Coffee Co., and the new pol- 
icy gives added meaning to the premi- 
um plan used by this concern. 


Walter M. Swertfager is appointed direc- 
tor of advertising of Seagram-Distillers 
Corp., following his resignation from 
Lord & Thomas, where he has been an 
executive for the last eight years. Pre- 
viously he was with Vacuum Oil Co. 


While the company makes no pre- 
tense of expecting the consumer to be- 
lieve she is getting “something for 
nothing” when she receives premiums 
with coffee and tea purchases, it does 
prove to her through this premium 
plan that she is receiving premium 
goods of her own choice without pay- 
ing any more for her merchandise than 
she would were she not to make use 
of the premium coupons. The coffee, 
with the coupon in each pound, costs 
her the same retail price whether or 
not she takes advantage of the premi- 
ums offered. The cost of the premiums, 
naturally, comes from an appropriation 
set apart for such purchases just as the 
advertising appropriation is spent for 
space in publications or time on the 
air. Premiums cost money but thev 
justify their cost by increasing sales 
and thereby decreasing the cost of man- 
ufacturing the individual package of 
the product, just as does advertising. 


Buyers Rarely Take Advantage 


As a matter of absolute fact, Ameri- 
can Coffee officials were not long in 
discovering that most housewives, after 
receiving their premiums, did not con- 
tinue to save the coupons and return 
them for the cash refund for the very 
good reason that before they had ac- 
cumulated the required number some 
new premium caught their fancy and 
persuaded them to use their new cou- 
pons for the purpose of acquiring this 
additional “‘gift’’. The very fact that 
the company is so willing to refund 
the cost of the premium and no ques- 
tions asked makes consumers less anx- 
ious to take advantage of the offer. 
They feel assured that the premium 
must be all that the company claims it 
to be and therefore are satisfied that 
they have paid a fair price for it and 
have, in fact, obtained it at a consid- 
erable saving compared with the regu- 
lar retail price. 

The cash refund offer is similar in 
many respects to the “money back’’ 
guarantee used so successfully by many 
“manufacturers. The knowledge that 
the product is guaranteed is of inestim- 
able value in helping to complete the 
sale and unless the item proves defi- 
nitely unsatisfactory in some major re- 
spect the company is seldom called 
upon to make good on the refund. 
This is especially true in the case of 
American Coffee, which offers new and 
attractive articles every month or so. 

Truly, the advance premium, long 
the bane of the sales manager's exist- 
ence (when competitors sell from 
house to house and his product moves 
through retail outlets) seems to have 
met its match in a plan that offers 
everything the advance plan can offer 
and seems to be even more adaptable. 


SALES MANAGEMENT 


“Ne 


Well, how do 
1 look ? 


se \ 


f 
ail, 


Just as you should — 
like one of the 


“beauty-ad" women in 


K— That merciless mirror, Media Records, re- 


a. flects THE CALL-BULLETIN thusly: TOILET 

REQUISITE ADVERTISING ... more than 
/ twice the volume carried by any other San 
Francisco daily newspaper! We'll be glad 
to introduce you to a lot of women you 
ought to know! 


Represented nationally by PAUL BLOCK AND ASSOCIATES 


_ CALL-BULLETIN 


THE CALL-BULLETIN-GREATEST EVENING CIRCULATION IN NORTHERN CALIFORNIA 


— =e 


ror = 


— 


“Saat 
Tf it takes money to buy-THE CALL-BULLETIN can sel/ it—in volume! 


. . . . ) ee 
Divisions of Probable 1937 Investments 
Question: From the standpoint of safety, return on your investment, ete, 
where in the following group would you place your money, or how. divide it 
over the group if you were not going to place it all in the same type? 
Pre- 
Life In- Common ferred Savings Trust Real 

Per ees surance, Stock, Stock, Banks, Fund, Estate, Bonds, 
ercentage : “> of % of > of — of “ of % of © of 

of Distribution People People People People People People People 
1% to 24% of total funds. 14 7 1 10 2 5 4 
25% © to 49% of totalfunds. 24 19 15 17 ! 19 16 
50% to 99% of total funds. 24 7 2 5 2 21 9 
100% of total funds..... 13 l ; l l 6 l 
DE ertkacwscausiekneks 25 66 79 67 9] 19 70 


New 
by 


MRCA ranks real estate sec- 


Consumer 


survey in 

York and Sioux City 
ond, and common. stocks, 
savings deposits, bonds, pre- 
ferred stocks and trust funds 


in that order. 


General Publie Favors Insurance as 
Safest, Most Productive Investment 


OW will the savings of 1937 
be invested? 

If a cross-section of New 
York and Sioux City is typi- 
cal, insurance men should find it a 
bonanza year. Only one person out of 
every four with money to invest will 
fail to take out some insurance (as- 
suming that life insurance salesmen do 
their part), and 38 people out of every 
100 are inclined to put up to one-half 

of their savings into this medium. 
Real estate and common stocks are 
favored by many, but various forms 


of insurance policies are selected by 


the majority Of the money they have 
for investment, people will put the 
following proportions of their funds 
into insurance: 


14% will put up to one-quarter 
24% will put up to one-half 
24% will put up to three-quarters 
13% will put all 

25% will put none 


The tabulation headed ‘‘Divisions of 
Probable 1937 Investments” gives the 
exact wording of the first question, 
and a breakdown of the answers for 
seven popular forms of investment. 

In making the survey field workers 
of the Market Research Corporation of 
America, under the direction of Per- 
cival White and Pauline Arnold, went 
to 200 middle-class-and-above _resi- 
dents of Sioux City, Iowa, and its 
immediate environs, and to a similar 
number of New York business men in 
their offices. It would have been a 
fair assumption that great differences 
in opinion would be found among 
people in such diverse cities, but it 
did not turn out that way. So far as 
investments are concerned the resi- 
dents of the great metropolis and a 


[312] 


pe ey Baried #130 0002. >| 
“Ba Now He Ta Man Nosopy Ways 


ts 


soar my 


PAY Ihe Uouars A.Montu For Lire 
Yo the Order of : , 
eS Ee ae oomeces 
ae dpi ationny 
—— Higa St ie 


Depression—and a continual barrage of 


such advertisements as this—made annui- 


ties popular. 


medium-sized middle western city feel 
much the same. 

Following the first question (see 
table) the MRCA field workers asked 
this: 

Do you think common stock, well 
selected, is a good investment today? 

Compared to five years ago, is it a 
better investment, worse, or same— 
and why? 

The answer to the first of the two 
questions above indicates that very few 
of the respondents had confidence in 
common stocks in 1932 (and also 
probably they didn’t have any money). 
Stocks have had a tremendous rise 
since their low in that year, but the 
returns show: 


65% consider common stocks, well 
selected, a good investment to- 
day. 


30% think common stocks are a poor 
investment medium. 
5% haven't the foggiest idea. 


When asked whether they were bet- 
ter, worse, or the same, the responses 
were: 


58% 
11% 
18% 
5% 
8% 


The answers to the “why?” question 
reveal decidedly interesting opinions. 
Those who think that common stocks 
are a better buy now offered the fol- 
lowing reasons: 


better 
worse 

same 

don’t know 
no answer 


Business is better—all business is on 
ie WII, ORs. ini kin ke cacccpes 60% 
Stocks are now fairly well stabilized 11% 


They're going to increase in value.. 6% 
Securities Exchange Commission and 
other governmental operations cur- 
f°" GPR errr 6% 
Business faces a boom............ 4% 
Stock prices are going up......... 4% 
— facing a big increase in build- 
Sid eameb ee eu ARs de wie ide 2% 
won dividends are being paid..... 2% 
Inflation is coming............... 1% 
Fear has been overcome........... 1% 
Supplies are decreasing, demand in- 
RS Oe ore ee 1% 
The water has been squeezed out of 
NN Be errr 1% 
The best year in the nation’s history 1% 


Those who believe that common 
stocks are poorer investments, or at 
least not any better than they were five 
yeats ago, offered these as their rea- 
sons: 


Common stocks are always risky.... 30% 
Policies of the present Administra- 
tion make the future of private 
business uncertain ............. 18% 
Five years ago stock prices were near 
the bottom; today they are high.. 16% 
Based on today’s earnings prices are 
are 11% 


SALES MANAGEMENT 


FEBRUARY 15, 1937 


IN LOS ANGELES 


——definitely the second largest auto- 
mobile manufacturing area in America, 
approximately 200,000 motor cars and 
trucks will be produced this year. 


The workers who make these cars will be 
paid close to $7,000,000 in wages,—not 
including unknown thousands more to 
affiliated industries here. 


Each year sees Los Angeles stride forward 
as one of the Nation's great industrial 
centers. 


The newspaper advertiser who must reach 
economically the greatest part of this 
fertile and “able-to-buy” market invariably 
selects the West's Largest Daily as his 
Number One paper in this area. 


—-and that is the 


LOS ANGELES EVENING 


HERALD~#xpress 


NATIONAL REPRESENTATIVES 
PAUL BLOCK AND ASSOCIATES 


Surplus taxes make stocks poor buys 11% 
They may be all right for big-city 
people, but those in small towns 
and on farms can't follow the 


market closely .....cceccccsices 9% 
Labor troubles make common stocks 
WO TU ses tke co keowmecde 5% 


Respondents were asked: 

Do you think life insurance a good 
investment today? Compared to fwe 
years ago is it better, worse, same, and 
why? What type would you buy? 

The answer to the first question was 
a rousing affirmative for insurance; 
88% said “‘yes’’ and only 12% ‘‘no”. 

In answer to the second question, 
they said: 


Same—44% 
No answer—2% 


Reasons why they thought life in- 
surance better were: 


Insurance always good............ 35% 
General conditions improved...... 13% 
Poor companies have gone under.. 13% 
Oe rere ee ae 10% 
All companies stronger........... 8% 
Legislation makes it safer......... 8% 
Responsibility proved ............ 4% 
SO SOE WI cocks ciiescweus 3% 
More conservative ..............-. 3% 
Peace and comfort in old age...... 3% 


Annuities are the favored type of 


insurance. The vote for types was: 
TE fo heacnnadwaiedaneietnees 37% 
ID, a oa awk tren. waleged aid 32% 
ee eee 22% 
ET OG) ns ahwieninniedeeeeaaeen 5% 
ee ee 4% 


(EDITORS Al LARGE 


| Trade Winds—What America’s Executives Are Thinking, 
Talking and Writing About 


Patman Aftermath 


The quaint American custom of granting 
such bounties as advertising allowances 
without even the pretense or expectation of 
an audit is a single but sufficient illustra- 
tion of the mysteries of net returns. As a 
matter of fact, I have found literally hun- 
dreds of business men who while actively 
disliking the law (Robinson-Patman) admit 
to some gratitude that somebody is making 
them find out what they are doing. 

Edwin B. George, Econo- 
mist, Dun and Bradstreet 


Man to Man Justice 
The improvement of American distribu- 
tive processes offers one of the broadest 
opportunities in American economic life 
today. Perhaps it will be possible by regu- 
lation for our progress to be swifter and 
less painful than it would be if we relied 
entirely upon a competitive struggle for sur- 
vival. But we must first conceive the efficient 
functioning of the distributive system as 
our available means. We must now sub- 
stitute for these broad considerations the 
effort to work out on the basis of cost ac- 
counting a minute justice between man and 
man. 
Corwin D. Edwards, Commit- 
tee on Industrial Analysis, 
American Marketing Association 


Anticipating the Future 

It doesn’t take an Einsteinian mind to 
realize that the continuance of the New 
Deal means a continued drive for a broader 
distribution of the national income with 
greater purchasing power for the masses, 
and the protection of consumers and busi- 
nesses from unfair practices. The fact is they 
offer the possibility for the continued de- 
velopment of sales volume with an increase 
in the consumption of goods and the crea- 
tion of profit. The tide has definitely turned 
in that direction. Anticipation, not con- 
sternation as to how your product or your 
organization will fit in these conditions, is 
the course to follow. Burrowing into the 
ground and hibernating may be a good way 
for a ground-hog to keep from adjusting 
himself to the changing seasons. But 


[314] 


ground-hog tactics seldom preserve market- 
ing Organizations. 
Malcolm J. Proudfoot, Research 
Geographer, Bureau of the Census 


Relativity in Values 

Consumers are beginning to look with 
new interest at the goods and services which 
business offers them for their money. They 
want to know more about these goods. 
They want to know what makes them use- 
ful, what makes them durable, that is to 
say, what gives them value as something to 
be used, not merely purchased. And they 
want to know the relative qualities of goods 
so that they may compare variations in use- 
fulness with differences in price. In short, 
they want to know how to get their money's 
worth. 

D. E. Montgomery, Consumers’ Counsel, 
Agricultural Adjustment Administration 


Warning to Bankers 
Probably the lowest point that sound mar- 
keting has ever touched in this country was 
just before and just after 1929. For several 
years before the crash, financiers were run- 
ning all kinds of business. To many of 
them, working hard for honest profits from 
the sale of merchandise or services looked 
like a grubby occupation for which low- 
paid employes could be hired. So much 
quicker, neater money could be made by 
buying and selling slips of paper represent- 
ing equities—stocks, bonds and certificates. 
Seemingly indifferent to social and com- 
mercial consequences, there was an evil 
minority among financiers who also seemed 
callous to their destruction of reputations 
for fine integrity built by generations of 
wiser men of money. 
Frank R. Coutant, Director of 
Marketing Research, Pedlar & Ryan 


Independents Not So Active 

It is commonly believed that “the small 
independent retailer’ is providing the im- 
petus behind anti-chain store taxation. A 
closer scrutiny reveals, however, that while 
there are naturally many independent mer- 
chants supporting such movements locally, 
the driving power behind anti-chain store 


agitation and legislation is actually a group 
of middlemen and brokers. 
John P. Nichols, Assistant Managing 
Director, Institute of Distribution 


Consumer Preferences 


Every market study and every study for 

a new selling campaign should include 

product research. This should be done 

either to learn the current acceptability of 

the product or to learn any new selling fea- 

tures in the product which will appeal to 
current consumer trends. 

Ben Nash, In- 

dustrial Designer 


Editorial Independence 

When the shouting and tumult have died 
down, when the pros and cons of advertis- 
ing have been exhausted, when the last 
word has been said to every one’s satisfac- 
tion—a voice unheard though none the 
less emphatic says: Forget the advertiser in 
the real publication of a business magazine. 

William E. McFee, President, National 

Industrial Advertisers Association 


Trying to Be Fair 
One of the new ideas arising in the 
public mind is fair play for the average 
man. Unfair discrimination seems to be on 
its way out, with all the discriminatory 
rates, prices, discounts and services which 
have so long prevailed. Legislation reflects 
it, both state and Federal. Public sentiment 
is solidly behind it. The motive and the 
spirit of it is fine. Let’s hope that the 
methods used will be practical and not un- 
friendly. Much depends upon the good 
sense and the good faith, not merely of 
politicians, but of industry itself. 
John Benson, President, American 
Association of Advertising Agencies 


- Why Fixed Prices? 


As to what stores may do by way of 
closer cooperation, it seems to me that 
much could be accomplished for all con- 
cerned if stores would abandon the rather 
general practice of maintaining at all times 
the same fixed standard prices. It seems to 
me that maintenance of standard qualities 
is more important and you can’t do both in 
a shifting market. 

Recently the buyer of one of America’s 
leading stores which for five years has 
bought large quantities of a stocking from 
us and sold it at 69c, informed us he would 
have to discontinue it if he could not con- 
tinue selling it at the same figure. I think 
if I ran that store I would continue to give 
my customers the quality they had come to 
expect from me and ask them to pay the 
necessaty few cents more instead of my 
seeking out an inferior number in order to 


, maintain the established price. 


Frederic A. Williams, Presi- 
dent, Cannon Mills, Ince. 


Selective Selling Pays 


My study of the advantages of the agency 
or selective plan of distribution leads me 
to the positive conclusion that this con- 
tinues to be the most economical and con- 
structive avenue of distribution for nation- 
ally advertised lines. In this connection, it 
it worthy of note that one of the oldest of 
our textile manufacturers, who adopted only 
in 1935 a selective plan of selling, shows 
that in the year just closed there were net 
profits made between a quarter of a million 
and $300,000 as against a loss of nearly a 
million and a half in 1935, when they were 
without the selective plan of distribution. 

Eugene B. Sydnor, President, 
Wholesale Dry Goods Institute 


SALES MANAGEMENT 


ay 


Ine eighteen consecutive months the circulation of 
The New York Times has moved steadily upward. 
January’s circulation—511,505 weekdays and 793,788 
Sundays—was the highest for any January in The 
Times history. Thus The Times adds steadily to the 


number of sales opportunities awaiting the 


advertiser in New York’s basic market. 


The New Work Gimes 


: 
‘ALL THE NEWS THAT’S FIT TO PRINT” 


FEBRUARY 15, 1937 {315} 


But How Can Life Begin at 40 
When Employment Stops at 36? 


An article in the January 1 issue, “Is This a Young Man’s 


Age?” drew this spirited reply—a reply in which the writer 


takes a vigorous affirmative. 


BY 


N ballad, song and story—as well 
as in moving pictures—the night- 
watchman has been an elderly 
man, a superannuated employe 
eking out his declining years in a job 
rather lightly weighted by somewhat 
perfunctory duties for which he draws 
a nominal wage. Of course, every 
once in a while this typical honest 
yeoman of the guard is whanged over 
the head by a gang of thieves, but 
for the most part he sits by the fire 
until it’s time to ring his clocks. 
That's over now, if a recent adver- 
tisement in the Help Wanted page 
of the New York Sunday Herald 
Tribune may be taken as evidence. 
It read, “Wanted, Night Watch- 
man, Must Be Under 40.” 


35 Tycoons Prove No Rule 


Take away Old Grimes, and bring 
on his son! For this is the day of 
Youth, unless all signs fail, and in 
spite of the conclusions reached by 
Mr. N. D. Farmer in a recent issue of 
this magazine. 

A few weeks ago Mr. Farmer pro- 
duced the birth years and the salaries 
and the positions of some 35 men who 
were the presidents and chairmen of 
the board of many of our largest and 
most important corporations. Based 
on the fact that all of them were 
on the windward side of 50 he con- 
cluded that so far as these corpora- 
tions were concerned, it was not “a 
young man’s age,’ and that the 
oldsters were not being pushed out. 

Now this conclusion is perfectly 
right and sound for these particular 
men, but not necessarily, if I may 
beg to differ, for these particular cor- 
porations. 

I do not know what their individ- 
ual company policies may be with re- 
gard to the employment of men over 
the age of 40—either in hiring them 
as new employes, or in retaining them 
as old workers. 

I believe, however, on the evidence 
of the want-ad pages of metropolitan 


[316] 


MALCOLM G. ROLLINS 


newspapers and by a survey made 
among employment agencies, that 
many companies do not want to hire 
men over 35—men over 30 in some 
cases, nor do they wish to take on 
women over 30. 

So while Mr. Jonas Apple, of the 
Apple Steel Co., to rig up a name, 
may be 61 years old, and have a 
salary of $150,000 a year, it may well 
be true that 100 of his lesser execu- 
tives—salesmen, superintendents and 
senior clerks—whose salaries aggre- 
gate that same amount, may all be 
under 40. Or, if they are over that 
magic line, may have their ears cocked 
for the “sound of running feet”— 
the feet of those younger men who 
must, to get up, stay close to the heels 
of their elders. So close, in fact, that 
some times youth steps on age. 

Yet, if you sell soap and shoes and 
chewing gum, the ninety-and-nine 
subordinates refute the biblical adage, 
for they are more important to you 


than the one Mr. Apple, whose ap- 
petite is shrinking, whose family is 
dispersed, and whose four or five cars 
can't eat as much gas and oil as the 
combined individual motors of his 
employes. 

So any information that tends to 
show the comparative value in the 
market place of youth vs. age, must 
be highly interesting to a salesman. 

As to the public recognition of this 
situation you need only refer to the 
speeches of President Roosevelt and 
of Harry Hopkins in the past few 
weeks. Both spoke with serious pur- 
pose when they called on American 
business to consider the plight of men 
over 40—the forgotten men of indus- 
try and commerce. 

On January 17 the New York Re- 
publican State Committee recognized 
this same situation and proceeded to 
start to do something about it. In a 
statement given out by the chairman 
of the committee the following per- 
tinent sentences appeared: 


“Hundreds of thousands of men and 
women in this state, who have reached the 
age of 40 years and are dependent on 
their labor for a livelihood, are today find- 
ing it increasingly difficult to secure em- 
ployment because of present laws and 
policies. 

“Men and women who through years 
of experience have become trained in lines 
of work for which they are peculiarly 


What Are the Upper Age Limits for Certain Jobs? 
Employers Give Agencies These Specifications 


Under 20-25 25-30 30-35 


MEN 20 yrs. years years years years years 45 yrs. 
Experienced 

ES eee 4 28 19 3 1 0 1 
Executives ....... 0 0 3 27 20 7 3 
Salesmen ........ 0 2 7 27 4 2 0 
Skilled Labor .... 1 2 ll 9 8 4 2 
IE occ vanes 3 5 10 4 4 2 2 
Tora Men 8 37 60 1 37 15 8 —235 
% MEN 3.4% 15.7% 25.5% 29.9% 15.7% 64% 34% —100% 
WOMEN 
Secretaries 

Oe ae 3 33 23 2 0 0 0 
Typists-Clerks .... 16 34 4 0 0 0 0 
Saleswomen ...... 4 15 18 8 1 0 0 
BE: éncne se news 6 10 3 6 1 0 0 
Tora, Women ... 29 92 48 16 $ 0 0 —187 
% Women ........ 15.5% 49.2% 25.7% 8.6% 10% .. a —100% 
Tora, MEN AND 

EE vevnewss 37 129 108 86 39 15 B —422 
Yo MEN AND 

WoMEN ....... 8.8% 30.6% 25.6% 


35-40 40-45 Over 


20.4% 9.2% 3.5% 19% —100% 


SALES MANAGEMENT 


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Pre-Vue News about the 


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EXPOSITIO IN eA 


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THROUGH his visit to the Inter-American Peace Confer- 
ence at Buenos Aires, President Roosevelt and officials 
of his Administration helped pave the way for closer 
“neighborliness” in the Western Hemisphere. 

The GREATER TEXAS and PAN AMERICAN 
EXPOSITION is inspired by and will celebrate this 
milestone in Inter-American friendship and closer irade 
relations. Corporations doing a national and interna- 
tional business are vitally interested in this commemora- 
tion of our nation’s “good neighbor” policies. The list of 
exhibitors already assured reads like the Blue Book of 
American Business. 


New in Theme—New in Design 
Although occupying the beautiful $25,000,000 Texas Centennial 
plant of 1936, with its 26 mammoth, permanent exhibit halls, the 
GREATER TEXAS and PAN AMERICAN EXPO. 
SITION will be entirely new in theme and attrac- 
tiveness. The Texas Centennial was proclaimed the 
“Most Beautiful of All World’s Fairs.” With many 
new buildings—designed in the Aztec and Latin- 
American influence—with new landscaping, new 
lighting effects, the 1937 Exposition will even sur- 
pass the beauty of the previous Exposition. 

Expected attendance is conservatively estimated 
at seven millions. Last year’s figures indicated that 


Industry Acclaims this International 


Celebration of Peace and Good Will 


about 80 per cent of the Texas Centennial visitors came from the 
Southwest—Texas, Oklahoma, Louisiana, Kansas, Missouri, New 
Mexico and Arkansas. This represents a goodly portion of 
Industry's best market—a major zone with acknowledged high 
purchasing power. 

Again, as in 1936, more than a million people from the more 
distant sections—New York, Illinois, California, Washington, and 
other distant states—will also make the long trip to Texas; drawn 
by the glamour of a truly great Exposition. 1936 vacationists 
found new and unexpected vacation attractions in Texas. They 
returned home to spread the good news about Dallas, other Texas 
cities, the Southwest and Old Mexico. 

With prosperity now a fact throughout the Americas, with an 
even more brilliant, more colorful Exposition for 1937—Dallas is 
destined to be the bright spot on the vacation and business map 
this year. 

Vacationists throughout the Americas are invited to make their 
plans now to enjoy the entertaining and instructive GREATER 
TEXAS and PAN AMERICAN EXPOSITION, June 12 to Oct. 31. 

Exhibitors are urged to arrange for their participation now. The 
Exposition offers an unusual opportunity to contact 
America’s prosperous vacationists and to help further 
the spirit of good will now prevalent in the Americas. 


Exhibitors! Send for Literature! 


Complete plans and illustrations of the new 1937 
Exposition will be sent prospective exhibitors and their 
advertising agencies. Write on your company letterhead. 
Address Mr. Ray Foley, Assistant Director General, 
Exposition Administration Building, Dallas, Texas. 


AMERICA’S ONLY INTERNATIONAL EXPOSITION FOR 1937 


FEBRUARY 15, 1937 


[317] 


fitted, are finding themselves out of jobs 
as they reach the age of 40. 

“This has caused increasing alarm not 
only among those directly affected, but also 
among their wives and children, who are 
dependent upon them. The prospect fac- 
ing such a family after the breadwinner 
has passed 40 and finds himself out of a 
job is dismal, indeed. 

“Estimates by the Division of Vital Sta- 
tistics of the State Department of Health 
show that as of July 1, 1935, there were 
3,548,639 men and women in this state 
between the ages of 40 and 65. They con- 
stitute more than a quarter of the entire 


population of the State. 
“Relief officials estimate there are today 
92.000 men and 79,000 women between 


the ages of 40 and 65, who are on the 
home relief rolls of the state. A _ large 
proportion of them are able to work and 
anxious to earn their own livelihood. 

“It is the position of the executive com- 
mittee of the Republican State Committee 
that a way should be found to correct such 
conditions.” 

Obviously this situation is far too 
big for it to become a political foot- 
ball and it is to be hoped that Demo- 
crats will join with Republicans in 
trying to do something about opening 
the door of opportunity for men 
over 40. 

Just how restricted are the oppor- 
tunities for men of that age or even 
younger may best be told by two facts. 

If you will turn to the want-ad 
page, of your local Sunday paper, you 
will find a great diversity of vacant 
positions. In a recent Sunday issue 
of the New York Herald Tribune 
there were about 2,000 separate want 
ads, for men and for women. 


Dice Are Loaded Against “Age” 


They asked for secretaries who 
knew Spanish, advertising agency ac- 
count executives, mechanical  en- 
gineers, bookkeepers, accountants, and 
scores of other people, all of whom 
were wanted for work where some 
experience would seem utterly neces- 
sary. 
Most of them imposed such an age 
requirement as “‘recent college grad- 
uate’’ or the like, and 250 of them 
stated a definite age limit. Let’s dis- 
card 21 immediately because they 
called for office boys, theatre ushers 
or applicants for similarly youthful 
jobs. 

Of the remaining 229, 215 specifi- 
cally stated that the applicant must be 
under 35. In other words, 94% of 
the employers would not put on their 
payrolls new men and women beyond 
the age of 35. 

Not satisfied that these figures were 
necessarily as formidable as_ they 
seemed, the second step was a survey 
conducted among the employment 
agencies of New York, Chicago, De- 
troit and Cleveland. One hundred 
and twenty-six got letters asking them 
at what upper age limits employers 


[318] 


“*Carat!’ dumbbell, not ‘carrot’ !’”’ 


would hire workers in certain specifi- 
cations. Forty-six replies were re- 
ceived (a very satisfactory percen- 
tage, obviously, and apparently reflect- 
ing the pertinence of the question). 

The table shows how these employ- 
ment agencies answered. 

It will be observed, of course, that 
experience does count in the case of 
executives, and it would be a madder 
world than it is if this were not so. 
However, even in that favored class, 
4 out of 5 must be under 40, With 
salesmen the ratio is higher and the 
ages younger—S8 to 1 against a man 
even 35. 

What happens to women over 35 is 
apparently nobody's business. 

Another question asked of these em- 
ployment agencies was, ‘Do the com- 
panies for whom you act, place a 
maximum age limit on jobs in different 
classifications?” 

And here the answer was just as 
overwhelmingly yes, for 90% of them 
answered in the affirmative—and those 
age limits were in all cases 40 or 
under. 

So it seems that while life may still 
begin at forty, it is not likely to be a 
life of ease and enjoyment. It’s more 
likely to be a life of difficulty—of try- 
ing to find work at middle age in a 
world that wants young people. 

“Through at forty’’ is just as sinister 
a phrase as it sounds. To the sales 
manager its great threat is not a per- 
sonal matter. The chances are that he 
is secure in his place, and that for 
another ten years at least he can con- 
tinue at the height of his powers, and 
in full command of his forces. 

But the threat to him of slackening 


employment through age limitation is 
a teal one, just the same. If his own 
factory and office is putting up the bars 
against men and women of that age, 
it is certain that other companies are 
doing the same. Inexorably the aver- 
age age of all employes is coming 
down—which means that the average 
age of buyers is coming down. 

Since business, after all, is simply a 
matter of mutual back-scratching, the 
baker sells his goods to the candle- 
stick maker's employes, while his own 
workers buy his neighbor's candles. 

Carried out ad infinitum your em- 
ployes under 40 must be many people's 
buyers under 40 as well. Being 
brought together somewhere are Social 
Security age records on 26,000,000 
American workers—in all sorts of 
work, and earning up to $3,000 a 
year. The ages of these people, broken 
down as they presumably can be, will 
furnish the greatest exposition of buy- 
ing power yet disclosed, for it will 
show definitely how many of these em- 
ployes are above and how many are 
below 40—and then advertising and 
sales efforts will be forced to concen- 
trate on the bigger markets. 

When Dr. Walter B. Pitkin wrote 
“Life Begins at Forty,” he started an 
avalanche of paraphraseology. The 
defense mechanism which he set up 
for people passing that date line re- 
sulted in happiness for thousands of 
people who found in Dr. Pitkin a 
comfort and a solace. It shouldn't 
however, act as an anodyne for sales 
managers—for the brutal facts are that 
people after 40 are beginning to slip 
away as buyers, with simpler wants, 
fewer desires, and too often sadly di- 
minished buying power. Despite all 
wishful thinking, this definitely is a 
young man’s age for the seller as 
well as the buyer. 


G-E-Man: Ralph C. Cameron, recently 
in charge of department store sales of 
General Electric kitchen appliances, be- 
comes manager of the entire department 
store sales division of the appliance and 
merchandising department of G-E. Thus 
are added radios, laundry equipment, 
etc., to the already large list of products 
of which he supervises the sales. 


SALES MANAGEMENT 


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Contests are old stuff, but Old Gold, by unlimbering the heavy howitzer of vast prizes 


is sure to engage the attention of millions of puzzle-solvers and smokers. 


Above the 


easily guessed cartoons that opened the campaign. 


Advertising Campaigns 


Old and New Products as Promoted in ey ad 


Magazines, 


QO. G.’s, Luckies’ Big Guns 

Cigarette makers, and especially the 
Big Four, are the closest-mouthed 
people in business today. Their ad 
agents, fully aware of the giant sums 
which the 15% commissions total 
from such accounts, would commit 
hara-kiri if word of a forthcoming 
campaign trickled into print before 
the first ads broke. Nevertheless, 
gossip does get around. 

Recently newshounds sniffed hun- 
grily outside the door of Lennen & 
Mitchell, agents for Lorillard’s Old 
Gold. There was a rumor that Old 
Gold would bust loose with a super- 
contest, one so huge that this lowest 
volume member of the Big Four would 
be dynamited several steps up the lad- 
der of sales. Not a word issued from 
the majestically-paneled L. & M. office. 

But on January 31 This Week car- 
ried a double spread, and the next day 
virtually every daily of importance in 
the U. S. also, setting forth Old Gold’s 
behemoth contest. First prize, $100,- 
000; second, $30,000; third and 
fourth, $10,000; fifth and sixth, 
$5,000; 1,000 prizes in all amounting 
to $200,000. As a smaller ad stated, 
the contest had been scheduled to 
start a week earlier, but the Ohio- 
Mississippi river flood caused a post- 
ponement. 

The contest is of 15 weeks’ dura- 
tion, requiring contestants to submit 


{320} 


Radio, Billboards and Trade Papers 


solutions of six cartoon puzzles each 
week, plus wrappers from three O. G. 
packages, or “reasonably accurate, 
hand-drawn facsimiles.” Few contest- 
ants will send in facsimiles, for they 
know that O. G. is interested in sales 
not art. 

Six years ago Camels offered $50,- 
000 in prizes, with $25,000 for top 
place. “More than a million” entries 
were received. Today contests have 
lost their pristine novelty; yet with 
two hundred grand for lure, O. G. 
may expect to do at least as well. On 
that basis, 60 cigarettes a week for 15 
weeks would equal 900,000,000 
O. G.’s. With a strong possibility of 
even more entries, the company’s esti- 
mated volume of seven billion ciga- 
rettes last year may be hoisted sharply. 

Meantime, over at Lord & Thomas, 
agents for American Tobacco’s Lucky 
Strike, things were humming. After 
a lapse of several months, Luckies 
were returning to newspaper advertis- 
ing. Testimonials (a tried and true 
device) from singers, movie stars and 
others whose ‘“‘voices are their for- 
tunes’ will vouch for Luckies’ “throat 
protection.” 

The theme will appear on the back 
covers of magazines, also; and will be 
personally expressed by the celebrities 
in “Your Hit Parade’ programs on 
NBC and CBS networks. According 
to Variety, amusement trade journal, 


“as high as $5,000 will be paid picture 
stars for two and a half minute inter- 


views” on the networks. Movie pro- 
ducers are willing for their stars to 
share this gravy, because the radio and 
newspaper ads will mention pictures 
about to be released—a fine boost for 
Hollywood's “epics.” 


Nash Makes It Four 


Back in 1932 Ford and General 
Motors’ Chevrolet had thé low-priced 
car market safely tucked away«in their 
vest pockets—or so they fondly be- 
lieved. There seemed little welcome 
for newcomer Plymouth, Chrysler’s 
bottom bracket auto, J. Stirling Get- 
chell, head of the agency bearing his 
name, had, however, an inspiration. 
“Look at All Three” he exclaimed, and 
plastered that slogan atop all Ply- 
mouth’s ads. The rest is history, in 
which the shrewdly worded slogan 
played a not inconspicuous part. 

Today Ford, Chevrolet, and Ply- 
mouth (with the lion’s share of the 
low-priced market divided among 
them) are challenged by a fourth 
rival. “Get Out of the ‘All Three’ 
Class” urges Nash Motors, “this great 
big Nash costs just a few dollars 
more.” Subtle sneers at “‘all three 
small cars” are spotted through the 
Nash copy, appearing in 1,360 news- 
papers of 1,000 cities. The Nash CBS 
national hook-up commercials, too, 
contain the phrase. 

Whether history will repeat .and 
“All Three” will become “Ajl Four” 
is veiled by the mists of the future. 
Nash and the J. Walter Thompson 
agency are working and praying for 
that happy result. 


Seminole Concentrates 


Seminole Paper Corp. has started its 
first national newspaper campaign for 
Seminole toilet tissue through agents 
Paris & Peart. Heretofore ads have 
been sporadic, mostly color pages in 
This Week and The American W eekly. 
Now weekly insertions are to hammer 
away without ceasing in 87 papers of 
46 markets. In the Spring the list 
may be extended. 

Theme song is on Seminole softness 
and reiteration of ‘1,000 sheets to a 
roll.” 


Oxydol Doubles Up 


Oxydol’s “Ma Perkins,’’ dramatic 
serial which celebrated its third anni- 
versary on NBC last December, and 
which is broadcast over the NBC-Red 
network in the afternoons, Monday 
through Friday, will also be heard over 
the NBC-Blue network in the morn- 

(Continued on page 354) 


SALES MANAGEMENT 


+e 


F 88% 


§ 93% 


39% 


| 66% 


F 632% 


ment dwellers. 


ABOUT DETROIT 


for SALES a 


of Detroit’s families own their % Ss f 
own homes . 


ST 4 


Sf 


live in single houses or two to 
four family dwellings 


of all homes have employed 
members 


of all homes have telephones ~* 


of all homes own automobiles 


of all homes taking any week- 


day newspaper get The Detroit 
News 


take no other newspaper but 
The Detroit News 


% All these statistics are taken from a recent survey made bv Ross Federal Research Corporation 
among the homes of Detroit. 


munity, not an apartment house city, and The News covers 631% 


We wish to point out only this fact—Detroit is a home com- 
4% of home as well as apart- 


The Detroit News 


New York, THE HOME NEWSPAPER Chicago, 
I. A. KLEIN, Inc. J. E. LUTZ 
FEBRUARY 15, 1937 


[321} 


Retail Sales—1935, 1933, 1929 


(In thousands of dollars 
All Retail 
Population Sales 
Range Year % 
Cities of 1935 $2,450,032 143 
50,000 to 1933 1,873,249 14.1 
100,000 1929 3,608,276 13.9 
Cities of 1935 $14,698,561 85.7 
100,000 or 1933 11,409,836 85.9 
More 1929 22,276,627 86.1 
Combined 1935 $17,148,593 100.0 
All Cities 1933 13,283,085 100.0 
50,000 or 1929 25.884,903 100.0 
More 


add 000) 


Grocery Store Drug Store 


Sales Sales 
% % 
$184,290 17.2 $98,077 14.8 
403,622 17.1 84,723 14.3 


601,337 17.3 


$2,330,536 82.8 
1,950,780 82.9 
2,879,704 82.7 


$2,814,826 100.0 
2,354,402 100.0 
3,481,041 100.0 


127,639 14.3 


$565,876 85.2 
507,715 85.7 
766,237 85.7 

$663,953 100.0 


592,438 100.0 
893,876 100.0 


This completes the picture 
(started in the February 1 
issue ) of cities above 50,000 


and their retail sales. It an- 
swers the question “where 
do people buy?” Each city 
is compared with its own 
past—1933 and 1929—and 
the arrangement by popula- 
tion groups permits quick 
and accurate comparisons 
between cities. 


Your Biggest Markets— 
and How They Vary in Retail Sales 


BY 
N. D. FARMER 


HERE are the major retail 

markets, and how much is 

spent in them? If you sell 

through the retail trade, the 
success of your company may depend 
upon your knowledge of the answers 
to these two vital questions. In the 
issue of February 1, SALES MANAGE- 
MENT published figures for all retail, 
grocery and drug store sales in 98 
cities of 50,000 to 100,000 popula- 
tion, for the years 1929, 1933 and 
1935. The survey continues in this 
issue with corresponding figures for 
93 cities of 100,000 or more. For 
comparative purposes, the grouping of 
cities is based on the Census of Popu- 
lation for 1930. 

A natural inquiry is, why consider 
the population of 1930 with sales 
figures for 1933 and 1935. The an- 
swer is that this has not been done, 
and it is not suggested. Sales figures, 
or any other data, are of value only 
when comparable. When comparing 
cities, comparisons should be made be- 
tween those that have something in 
common, such as size, for instance, ex- 
pressed in terms of population. Mar- 
ket comparisons may be made that are 
full of meaning through bringing to- 
gether cities of about the same size. 
The basic consideration is the location 
and extent of the markets in terms of 
sales, not population, which is used 
only as a means to an end. 


{322} 


Population 
Range Year 
Cites of 1929 
50,000 to 1933 
100,000 1935 
Cities of 1929 
100,000 or 1933 
More 1935 
Combined 1929 
All Cities 1933 
50,000 or 1935 
More 


Retail Volume Percentages 


All Retail Grocery Drug Store 
Sales Store Sales Sales 
% 0 % 
100.0 100.0 100.0 
51.9 67.1 66.4 
67.9 80.5 16.8 
100.0 100.0 100.0 
51.2 67.7 66.3 
66.0 80.9 73.9 
100.0 100.0 100.0 
51.3 67.3 66.3 
66.2 80.9 74.3 


If you desire revised population fig- 
ures, you can refer to the Census Bu- 
reau estimate of July 1, 1936, for all 
the states, or the latest estimate dated 
July 1, 1933, covering all cities of 
10,000 or more. You may choose to 
develop your own curve of increase, 
based on the trend reflected in prior 
years. Bear in mind, however, that 
population is in a constant state of 
flux; and that, with increasing indus- 
trial activity, changes have always oc- 
curred in its distribution. 

The worth of population figures in 
determining market facts is frequently 
Open to question, no matter how cor- 
rect or current, largely because other 
factors may be of greater importance, 
dependent upon the commodity being 
marketed. 

A summary is given in this article 
which shows all retail trade, grocery 
and drug store sales (the two latter 


are included in the former, of course) 
divided between the cities of 50,000 
to 100,000 population, and those 
over 100,000. Despite the highly 
fluctuating sales in the three different 
years, which varied widely in charac- 
ter, the corresponding percentage of 
sales varies relatively little. 
Considering 1929 as 100% for 
purposes of illustration, the sales fig- 
ures for 1933 and 1935 indicate a 
quite comparable degree of recovery 
in the entire group of 191 cities. 
Increasing sales is not a matter of 
accident. It calls for the discriminate 
use of every available sales tool, and 
one of the more powerful is a knowl- 
edge of where markets are. If you 
know the number of dollars folks are 
spending, and where they are being 
spent, you are in a position to select 
the more favorable places for your 
promotion and sales attack. In a di- 


SALES MANAGEMENT 


®| 6 


®| 6 


Retail Sales by City Population (groups 


(Cities over 100,000 population. 


Sales figures in thousands of dollars—add 000.) 


Cities of 100,000 or 
More Population 


Lowell, Mass. 
Gary, Ind. 
Tampa, Fla... 
Duluth, Minn.. 
Utica, N. Y.. 


Evansville, Ind. 
Lynn, Mass... 

El Paso, Texas... 
Somerville, Mass. 
South Bend, Ind.... 


Canton, Ohio. 
Peoria, Wil....... 
Knoxville, Tenn.. 
Wilmington, Del... 
Tacoma, Wash... 


Miami, Fla.... 
Wichita, Kans... 
Reading, Pa...... 
New Bedford, Mass. 
Cambridge, Mass. 


Elizabeth, N. J... 
Fort Wayne, Ind. 
Fall River, Mass. 
Spokane, Wash. 
Erie, Pa..... 


Camden, N. J... ; 
Chattanooga, Tenn. 
Kansas City, Kans. 
Trenton, N. J... 
Albany, N. Y.... 


Jacksonville, Fla.. 
Norfolk, Va...... 
Yonkers, N. Y..... 
Paterson, N. J... 
Salt Lake City, Utah 


Tulsa, Okla. ; 
Long Beach, Cal... 
Des Moines, lowa.. 
Scranton, Pa. : 
Bridgeport, Conn. 


San Diego, Cal... .. 
Springfield, Mass... 
Nashville, Tenn... 
Flint, Mich........ 
New Haven, Conn... 


Fort Worth, Texas ... 

Hartford, Conn........ 
Grand Rapids, Mich.. . 
Youngstown, Ohio... .. 
Richmond, Va......... 


Oklahoma City, Okla.... 


Dayton, Ohio. . . 
Syracuse, N. Y.. 


Omaha, Nebr....... ; 


San Antonio, Texas. .... 


Providence, R. |...... 
Memphis, Tenn..... 


PR iv accnscess 
Birmingham, Ala... ... 


Dallas, Texas.......... 
Atlanta, Ga.......... j 
St. Paul, Minn......... 
Oakland, Cal.......... 


Denver, Colo........ 


Columbus, Ohio....... 


Toledo, Ohio..... : 
Houston, Texas... . 
Portland, Ore...... 
Louisville, Ky....... 


NA—Data not available. 


| 

1930 er 
Po ulation 

1935 

100,234 $30,962 
100,426 29,277 
101,161 | 34,764 
101,463 | 41,073 
101,740 | 41,151 
102,249 30,510 
102,320 34,615 
102,421 31,896 

103,908 22,543 | 

| 104,193 36,214 

| | 

104,906 39,802 | 
104,969 46,816 | 

..| 105,802 41,730 | 

| 106,597 48,609 | 
106,817 39,345 | 
110,637 75,326 | 
111,110 49,464. | 
111,171 48,843 
112,597 35,197 | 
113,643 39,111 | 
114,589 42,911 
114,946 42,668 
115,274 31,271 
115,514 58,403 
115,967 38,051 
118,700 38,705 
119,798 44,065 
121,857 27,782 
123,356 | «48,825 | 
127,412 79,742 | 

| 

129,549 | 50,745 | 
129,710 50,120 | 
134,646 | 39,865 | 
138,513 | 54,596 | 
140,267 | 59,220 | 
141,258 «| «(56,019 | 
142,032 63,181 | 
142,559 68,801 | 
143,433 54,993 | 

146,716 57,030 | 
147,995 75,549 | 
149,900 71,557 
153,866 74,561 
156,492 58,303 | 
162,655 71,638 | 
163,447 64,503 | 
164,072 88,639 | 
168,592 59,784 | 
170,002 62,883 
182,929 | 79,837 
185,389 | 72,308 
195,311 | 71,908 
200,982 | 80,483 
209,326 | 81,384 
214,006 | 90,675 

| 231,542 78,744 

| 252,981 113,392 

| 253,143 101,915 

| 255,040 95,899 

| 259,678 73,764 
260,475 | 123,550 
270,366 136,842 
271,606 137,155 
284,063 | 141,781 
287,861 127,497 
290,564 118,274 | 
290,718 112,550 
292,352 113,715 
301,815 147,413 
307,745 100,702 


NC —Data not complete. 


$25,621 
17,264 
26,725 
28,266 
27,667 


22,559 
31,824 
21,346 
19,699 
25,249 


28,137 
34,699 
27,404 
37,376 
28,950 


44,940 
36,894 
36,741 
30,230 
26,135 


33,355 
31,299 
28,624 
38,375 
27,813 


32,689 
32,152 
19,686 
37,805 
60,650 


37,767 
39,228 
32,057 
48,179 
42,109 


44,690 
41,676 
55,023 
41,853 
44,337 


53,917 
58,010 
50,560 
37,094 
55,467 


43,090 
68,944 
45,481 
40,765 
65,982 


53,492 
54,597 
57,915 
64,722 
73,903 


60,618 
85,820 
69,077 
70,445 
55,914 


88,512 
94,484 
101,323 
103,904 
106,553 


93,253 
76,595 
98,392 
105,865 
81,229 


| 
| 


$44,650 
48 246 
48,706 
55,851 
56,978 


47,634 
51,714 
54,993 
30,200 
67,949 


63,991 
70,345 
55,027 
69,245 
61,745 


72,804 
79,741 
72,790 
51,758 
54,904 


60,156 
69,626 
45,997 
74,889 
59,033 


54,320 
58,048 
40,517 
75,061 
102,257 


65,910 
67,087 
60,834 
85,026 
89,427 


91,654 
78,252 
89,665 
77,772 
79,410 


94,772 
107,587 
90,024 
93,444 
113,880 


99,859 
128,802 
114,532 

96,875 
104,043 


118,614 
109,101 
118,507 
136,592 
118,184 


120,259 
173,489 
151,235 
140,469 
129,369 


178,927 
180,565 
170,733 
201 ,637 
194,163 


170,930 
180,023 
184,680 
208,601 
152,850 


11,175 


10,092 
8,768 
8,288 
8,746 
9,859 


9,928 
10,472 
11,783 
11,319 
12,062 


12,526 
14,047 
13,969 

9,822 
12,588 


8,953 
16,425 
12,043 
12,670 
14,044 


11,797 
16,756 
15,877 
15,263 
18,020 


13,518 
20,520 
18,255 
16,478 
14,161 


20,166 
21,337 
20,399 
23,945 
21,499 


21,005 
20,356 


| 


11,092 


8,851 
8,072 
6,407 
8,001 
7,563 


8,546 
6,431 
9,035 
9,084 
10,603 


9,532 
12,020 
9,834 
8,099 
10,764 


7,838 
12,911 
9,297 
10,089 
12,220 


9,511 
11,209 
12,102 
12,173 
14,445 


11,190 
17,597 
13,536 
14,015 
10,625 


15,184 
16,847 
16,864 
18,539 
19,369 


18,648 
15,926 


| 
| 


DRUG STORE SALES 


1929 1935 | 1933 1929 
| 
$8,486 $939 | $926 $1,283 
10,392 1,136 | 768 1,679 
8,774 1,534 | 1,289 2,125 
11,809 1,279 | 1,020 1,419 
8,913 1,233 | 862 1,645 
| 
9,465 1,368 | 1,179 1,541 
12,667 1,336 1,285 | 1,682 
8,634 1,451 1,069 | 2,041 
9,052 1,042 | 802 | 1,387 
9,257 1,441 | 1,107 | 2,074 
9,425 1,349 | 1,198 1,799 
10,791 1,604 | = 1,283 2,718 
10,110 1,816 | 1,430 2,093 
11,711 1,477 | ~—- 1,364 1,757 
8,502 1,221 | 915 1,780 
12,002 3,977 | 2,616 3,186 
11,542 2,398 2,759 3,376 
10,306 1,493 1,244 1,769 
11,701 1,576 | 1,437 2,237 
12,308 1,522 | 1,493 1,952 
8,613 1,222 | = 1,044 1,553 
10,817 1,656 | 1,537 2,925 
11,341 823 970 1,577 
9,114 | 1,787 1,596 2,075 
8,334 | 976 923 | 1,623 
| | 
9,685 | 1,239 1081 | 1,231 
5,612NC| _—-'1,752 1,378 2,385 
10,445 1,908 1,769 | 2,928 
12,609 | 1,810 1,305 | 2,089 
11,629 2,151 2,285 3,334 
12,002 | 2,939 2,212 3,458 
9,309 | 2,290 2,163 3,006 
10,934 | 1,209 1,038 1,975 
9,957 1,378 1,601 1,748 
10,305 | 2,156 1,910 2,987 
| 
13,464 | 3,095 2,767 4,396 
11,310 3,258 | 2,556 | 4,228 
12,922 3,284 | 3,288 3,729 
13,092 1,491 | 1,283 2,016 
14,671 1,779 1,560 2,375 
11,752 3,131 2,483 3,577 
18,133 2,377 2,055 2,884 
13,233 2,934 2,339 3,547 
16,411 2,392 1,391 3,230 
15,399 2,329 2,001 2,995 
15,440 2,798 2.572 5,383 
19,754 3,292 2,415 3,453 
16,029 2,643 | 2,127 4,062 
17,250 1,633 1,357 2,737 
15,969 3,582 2,942 3,871 
15,174 4,398 3,910 5,766 
18,479 1,905 1,636 2,481 
18,867 3,655 2,871 4,492 
18,850 2,644 | 2,197 3,832 
20,704 3,609 3,493 4,827 
16,870 3,672 | 3,259 5,620 
28,138 3,913 3,371 5,755 
24,578 4,498 | 3,466 6,400 
24,405 3,648 3,159 5,024 
21,287 3,533 | 2,588 5,690 
26,538 7,088 | 3,966 8,728 
26,676 6,133 | 4,764 8,075 
24,719 4,165 | 3,657 NA 
35,727 3,856 3,321 5,120 
25,799 8,268 6,804 7,980 
28,882 5,104 4,715 6,533 
29,383 4,299 3,515 5,919 
30,217 5,301 5,026 7,698 
27,661 | 8,151 6,447 6,402 
31,022 | 5,624 4946 | (7,237 
| 


(Continued on page 324) 


FEBRUARY 15, 1937 


[323] 


Retail Sales by C 


(Cities over 100,000 population. 


iity Population Groups 


(Continued from page 323) 


Sales figures in thousands of dollars—add 000.) 


ALL RETAIL SALES GROCERY STORE SALES DRUG STORE SALES 
Cities of 100,000 or 1930 ee ee — ee 
More Population Population | | 
1935 1933 | 1929 | 1935 1933 | = 1929 1935 1933 1929 
ee | we ‘ = Se aa 4 
Jersey City, N. J. 316,715 $76,954 | $61,730 | $121,085 | $17,543 | $14,804 | $20,527 $2,744 | $2,263 $3,857 
Rochester, N. Y. 328,132 132,420 | 106,321 | 206,492 | 26,905 | 23,526 | 27,768 | 3,887 3.319 | 5,650 
Indianapolis, Ind. 364,161 | 139,084 | 104,177 | 220,628 25,620 21,496 | 36,149 | 9,433 7,239 11,957 
Seattle, Wash. 365,583 | 163,185 | 129,096 | 252,169 | 22,880 20,080 30,851 6,326 6,538 9,087 
Kansas City, Mo... . 399,746 209,399 | 163,680 | 349,918 | 27,107 | 26,829 39,710 15,961 15,082 17,307 
} | 
Newark, N. J. 442,337 | 197,527 | 188,167 | 322,778 | 23,453 | 24,331 29,964 3,601 5,408 7,028 
Cincinnati, Ohio............. 451,160 | 196,867 | 160,488 | 291.083 | 32,643 29,009 42,664 7,710 7,545 9,980 
New Orleans, La... 458,762 123,524 | 103,386 | 162,948 | 21,858 21,206 25,060 6,908 6,281 7,655 
Minneapolis, Minn. 464,356 | (220,834 | 168,636 | 298,577 | 34,448 25,869 36,832 8,573 6,843 9,282 
Washington, D.C... 486,869 | 330,813 | 241,515 | 336,262 57,222 48,395 52,703 19,255 15,494 16,414 
Buffalo, N. Y... 573,076 205,306 | 162,526 | 342,855 | 34,938 31,127 | 46,043 6,250 6,136 8,906 
Milwaukee, Wisc. 578,249 236,941 | 178,740 | 353,894 | 39,398 29,353 46,214 8,630 8,175 12,347 
San Francisco, Cal. 634,394 298,371 | 254,075 | 474,683 | 40,379 32,523 51,576 10,559 11,342 12,966 
Pittsburgh, Pa. 669,817 | 266,551 195,681 | 441,143 | 48,648 40,691 64,134 9,008 8,191 15,232 
Boston, Mass. 781,188 | 439,121 | 374,805 | 672,760 60,310 53,506 74,417 12,865 12,667 16,840 
| 
Baltimore, Md. 804,874 301,137 | 251,461 | 406,352 | 48,471 47,943 57,133 12,225 10,479 | 13,112 
St. Louis, Mo. 821,960 316,398 | 252,813 | 471,950 | 61,388 | 50,332 76,271 13,195 | 12,196 | 18,394 
Cleveland, Ohio 900,429 355,210 | 275,935 | 534,061 56,026 | 47,243 66,225 12,974 11,886 | 17,348 
Los Angoles, Cal. 1,238,048 593,902 | 453,340 | 875,775 81,702 66,174 92,806 26,204 25,148 38,368 
Detroit, Mich. 1,568,662 543,690 369,936 | 890,189 79,421 72,776 | 139,263 20,529 19,841 | 34,333 
| | | 
Philadelphia, Pa. 1,950,961 656,744 | 514,456 | 1,083,914 | 105,689 81,716 | 125,448 20,274 19,198 | 33,082 
Chicago, Itt. 3,376,438 «1,215,706 | 990,084 2,127,520 | 155,544 | 140,998 | 218,407 55,709 50,034 80,409 
New York, N. Y. 6,930,446 2,847,332 | 2,245,801 | 4,272,633 | 379,141 308,640 | 404,181 83,086 | 77,305 | 125,884 
- = x : a ~~ = | 
NA—Data not available. NC —Data not complete. 
rect attack, it may pay to use a rifle ent customers, the other to get mew im many quarters. Has this been 


rather than a shotgun, in developing 
the sound idea of selective selling. 

Green pastures flowing with milk 
and money may be waiting for your 
product if you know where they are 
But that’s the rub—knowing where 
the green pastures are. So many sales 
managers plan sales attacks without 
knowing, and cannot tell whether the 
volume that may—note the word may 
—be obtained will justify the sales 
expense and time involved in terms of 
profit to the company. 

A sales executive recently inquired 


“How can I increase my _ sales?” 
The answer, “Go where your markets 
are’ caused him to reply, “That's 


simple!” Yes, it was simple, but 
many salesmen are sent out with a 
blessing and a pat on the back and are 
expected to bring home the bacon, 
when the sales manager should know 
there is not even salt pork in the ter- 
ritory. 

One of the ways to make sales ef- 
fort more effective in terms of profit, 
is to make it more direct, and to con- 
centrate the attack. Aim for the 
bull’s eye! Use the spotlight more, 
the floodlight less! 

There is universal interest in in- 
creasing sales, and millions of words 
have been printed and spoken on the 
subject. After all, there are two ways 
to do it! One is to sell more to pres- 


[324] 


customers. 
A knowledge of market facts will 
indicate where to go, and where not 


to go, for business. 


tant. 


Both are impor- 
They point the way to increas- 


ing sales, and decreasing sales costs. 
They may be used in developing 
quotas for salesmen and district offices, 
and thus used as a yardstick in meas- 
uring results obtained in relation to 


sales dollars spent. 


sales promotion. 


A Practical Application 


They are vital in 


From the large tabulation which is 
a part of this article, select a group of 
cities of about 100,000 population. 


1930 1935—All 
City Population Retail Sales 
Knoxville, Tenn.... 105,802 $41,730,000 
Wilmington, Del... 106,597 48,609,000 
Tacoma, Wash..... 106,817 39,345,000 
Miami, Florida.... 110,637 75,326,000 
Wichita, Kansas... 111,110 49,464,000 


Miami was out in front in 1935. 


It had a larger retail trade that year 
than any city in the country in size 
up to Albany, N. Y., with a popula- 
tion of 127,412, and retail sales of 
$79,742,000. The next larger city 
which exceeded Miami in retail trade 
was Hartford, Conn., with a popula- 
tion of 164,072. Business in Florida 
has long been reported as improving 


your experience in Miami, and other 
cities? Check up, and see if your 
volume was satisfactory to you. 

Note the leadership in the different 
groups. Wilmington, for example, 
had a large retail and grocery trade, 
but Knoxville led in drug store sales 
in 1935. Duluth, Utica, Peoria, Al- 
bany, Long Beach, Des Moines, Hart- 
ford, Richmond, Omaha, Providence, 
Memphis and others are worthy of no- 
tice. Among the larger cities, note the 
position of Boston. 

Refer this time to a group of larger 
cities. 


1930 1935—All 

City Population Retail Sales 
Cincinnati ...... 451,160 $196,867,000 
New Orleans.... 458,762 123,524,000 
Minneapolis 464,356 220,834,000 
Washington, D. C. 486,869 330,813,000 
EN. ib wh ab ss 573,076 205,396,000 
Washington stands out in _ this 


group, due to the expansion of gov- 
ernmental activities with the resulting 
increase in population. Business has 
been good there for a long time—in 
fact, the depression probably had less 
effect in Washington than in any of 
the larger cities. Retail trade there in 
1935 was greater than in any of the 
larger cities of Milwaukee, San Fran- 
cisco, Pittsburgh, Baltimore, or St. 
Louis, despite the much larger popu- 
(Continued on page 385) 


SALES MANAGEMENT 


THE BALTIMORE NEWS-POST 


45 | Business Opportunities 


68 | Typewr 


Nationally — 


FEBRUARY 15, 1937 


YOU CAN reach 84% TYPEV 
of Baltimore’s A. B.C. City Radi 


Zone with this one evening 
newspaper. Total daily Free ') 
circulation 204,735 —(six ANY 
months ending 9/30/36.) 


tion, 


mo 


Average net paid circ 
ending September 30 


st c “ X « ~ 
I g | B . 


GARAGE — Dealership, Pa & 
Stone building 50x100 feet. Splendid loca- — 
main boulevard, nine 

Baltimore. Lifetime opr.” :"° 


ulation of the Sunda 
» 1936—230,239: the 


service 


miles 


y American for Six months 
largest in all the South. 


station. ity 


from | == 


"ws 1837 
oht rr 


[325] 


1. On November 30th, LIFE said, 
“But a second issue sell-out 
begins to look significant” 
550,000 
ovnt order) : 
‘LIFE: Se”? 
{er w 
480,000 
(Paid circulation) 
®| @ 
460,000 
(Paid circulation) 
415,000 
(Paid circulation) 
380,000 
(Paid circulation) 


- 


[326] SALES MANAGEMENT 


750,000 


(Print order) 


700,000 


(Print order) 


675,000 


(Print order) 


650,000 


(Print order) 


600,000 


(Print order) 


z: rr . . = 
2. Now, on February 1, there have been 


10 issues ...10 sell-outs ... each 
bigger than the last...and LIFE can 
only ask: 

“What does that begin to look like?” 


3. (Some sort of natural phenomenon?) 


ADVERTISING OFFICES--135 EAST 42"> STREET, NEW YORK CITY 


FEBRUARY 15, 1937 {327} 


@ Where Do Retail Prospects Originate? 


THE BANKER 


Once upon a time prospects for many nationally advertised products were 


considered as limited to the so-called “carriage trade.” But price reductions, 


time payments and an improved American standard of living have leveled 


the former barriers of high income and social status 


@ Voday no dealer knows who will be his next cus- 
tomer. It may be the banker or his butcher, the lady of 
fashion or her laundress. 


The only real bar to factory sales is the distance 


between dealer and consumer. Merehandising has 
advanced beyond selling the dealer to the job of helping 
the dealer sell. 

Retail selling requires localized advertising— sales 
promotion in the locality of prospect and dealer. And 
that means newspaper advertising—the mainstay of 


THE BUTCHER 


retailer and salesmanager. 

Localized advertising can be bought at low cost in 
the Chicago Tribune. The rates per line per hundred 
thousand circulation are among the lowest in_ the 


publishing business. 


@ As Chicago's first newspaper, the Chicago Tribune 
gives more coverage of today’s prospects in this market 
mass and class—than any other medium. 

The Tribune not only reaches the cream of metro- 
politan Chicago but practically all of your prospects in 
Chicago and suburbs. It sells more merchandise for 
retailers than any other Chicago newspaper. It starts 
the buying action that brings customers into the open 
and keeps retailers in business. 

To get maximum effect out of vour advertising, con- 
centrate it in the communities in which vour dealers 
operate. Put it in the medium that all their prospects 
read. In Chicago, you can get greatest return at lowest 
cost by advertising in the Chicago Tribune. 


r32s 


THE SALESMANAGER’'S MEDIUM 


CHICAGO TRIBUNE 


THE WORLD'S GREATEST NEWSPAPER 
Tribune Tower, Chicago 

5-167 General Motors Bldg., Detroit 
220 E. 42nd sSt.. New York 


820 Kohl Bldg., San Francisco 


SALES MANAGEMENT 


ae & 3 
; 
. 
} 
' 
\ 
| 
| @ 


24 


22 


Everybody knows Life Savers. 


.. the candy mint with the hole. Everybody sees them every- 
where . 


. . largely because Edward J. Noble, in his years at the head of Life Savers, Inc., 
has made an art of open-top counter displays and a shrewd science of getting them put in 
exactly the right spots. “A difference of 36 inches can drop our sales 50% in some places,” he 
says. So his 200 salesmen are trained in the art too. This vigorous chairman-of-the-board 
began developing his art and science soon after he—an advertising salesman—and J. Roy 
Allen bought “Crane’s Peppermint Life Savers’—unmerchandise and unsung but with the 


now-famous hole—for $1,000 in 1913. He helped run the business up to $25,000,000! 


At 17 he left Gouverneur, N. Y., to fire a boiler at Pueblo for the Colorado Fuel & Iron Co. It 
was too tough for a kid. The next month he sold accident policies in the plant; “made” $120, 
collected only $4.20! Since college days Noble collections have been better. Example: He 
turned a $250,000 group of the Thousand Islands into a million-dollar real estate develop- 
ment. In Summer, E. J. Noble—always in a rush—flies between his Thousand Islands place 
and his plant near New York. He looks like Walter Huston, but he’s no actor. He’s an 
advertising-minded merchandiser. Life Savers prove it. 


se ee es ae 


~ 
. te "“~ 
SS See 


The most entertaining part of that $805,620 Jell‘’O spent on last year’s advertising went to 
Jack Benny, radio editors’ choice for America’s No. 1 comedian on America’s No. 1 radio 
program. Since October, 1935, Jack Benny has been talking up Jell-O sales to the biggest 
unseen audience on record. For four years he has been radio’s top comedian; for three, the 
Jell-O program has been radio’s top program. 


Talking and making people laugh no matter what he says. is Jack Benny's business. As a 
mid-western youth he thought he could get what he wanted by playing a violin for it, but 
an unremunerative attempt to raise funds through musical appeal at a seaman’s benefit 
during the World War taught Benny that he would have to ask for what he got. So he 


folded up his fiddle, relegated it to a mute silence under his arm, and started wise-cracking 
his way to fame. And he gets a bit more than laughs for his talking. He even got a marital 


team-up with another talker. Mary Livingston, who furnishes her share of the laughs to 
Benny programs. 


Primarily a radio entertainer, with four sponsors to his credit—Canada Dry, Chevrolet, 
General Tire. and now Jell-O—Benny has put his verbal wit across both on stage and 
screen. He is now waiting for television, but not biding his time about it. 


+ 
PA 


SSRIS 


The man behind today’s success of the novelty soap 
industry ... originator of amusing soap figures used 
in advertising Ivory Snow ... creator of many o 
the Avenue’s smart mannequins . . . Lester Gaba 
not yet 30, has carved his way to fame through soap 
Seven years ago Gaba, originally from Hannibal 
Missouri, came East with an idea: A “soapy circus’ 
for children. Three days after the crash of 1929 he 
landed in New York, sold his little soap animals i 
a gaily painted wagon even to depression-struc 
shoppers, and started a business that has developed 
into an industry. 


His host of juvenile friends, comparable to those o 
another Hannibalian, Mark Twain, is paralleled only 
by his adult admirers. For them Gaba designs man 
nequins, from miniature soap originals—real arti 
ficial people that sell clothes right off their owrx 
backs in the “best” stores; his 22-inch dolls tha 
parade du Pont Acele yarn; his novelty soap fo 
adults; his clever fabric patterns conceived in soag 
and executed in textiles and wallpapers. 


His feet were his fortune. Flat feet at that! Robert E. Lee, a busted broker out of LaSalle 
Street, Chicago, was pounding the pavements back in depression days—and how his feet 
hurt! One day he met a man peddling a new kind of shoe. Mr. Lee bought a pair. Falling 
in love with them, he went up to Belgium, Wis., where they were made by the Allen 
Edmonds Shoe Co., and applied for a job. Selling from door to door, he invented a “dem- 
Qt onstration.” It consisted of bending, twisting and jumping on his shoes—and showing how 
¢O they spring back into shape. 

a Today he’s vice-president and sales manager of the company. Instead of selling door to 
& door, office to office, the Osteo-Path-Ik shoe now is in leading stores from the Pacific to the 
Atlantic and from Hudson's Bay to the Gulf. Six manufacturers in the United States and 
Canada make Osteo-Path-Ik under license but the method is called Osteo-Nailess Shoe 


Construction. A national advertising campaign is coming up. 


Mr. Lee has three hobbies: Golf, but no time for it; fishing, but no time for it; playing with Sed 
his three kids, but this is limited to his occasional visits home. He has one fixed belief: The 


mousetrap legend is a fake. His argument: The Osteo-Path-Ik shoe had been getting 
nowhere for years until his sales demonstration was perfected. That did the work. 


Even though Katherine Fisher left McGill and Columbia classrooms to direct Good House- 
keeping Institute, she is still teaching. She has over 2,000,000 students—readers of Good 
Housekeeping—women in their homes who are looking to Miss Fisher and her staff for 


information about their business, the greatest in the world—housekeeping. 


Since her Canadian farm childhood she has watched many household crafts depart from 
the home and seen “mechanical maids” taking the place of the strong right arm. In 13 years 
of directing Good Housekeeping’s Institute—-its staff of thirty-five investigating house- 
keeping problems and testing products offered for the Institute’s seal of approval... 
testing by the same high standards advertising offered to Good Housekeeping—she has 
helped emancipate women from drudgery. In her work she is actually selling standards 


of living. That, she believes, should be the essence of merchandise salesmanship, too. 


Devoted as Miss Fisher is to her work, she takes time to be an unusually broad and 


versatile reader, to go on long tramps, far away from the highways; and she adores 
picnics. In her office lined with books—books on home furnishing, cooking, economics— 


within easy reach is a copy of “Alice in Wonderland.” 


Alva R. Simmons, 1936 top-hole salesman for International Business Machines Corporation, 
works on this principle: Never try to dazzle a prospect. Know his problem. Make sure your 
product can help him solve it. Then you can reach the top man—and his whole organi- 
zation stays sold. The principle works. Last year Simmons topped all IBM men by making 
559% of his personal quota. His Baltimore office for the Time Recorder Division made 317%. 
So he automatically became President Simmons of the IBM Hundred Per Cent Club for this 
year and banged the gavel for the Club’s convention of 1,300 men in New York late in 


REWD January, receiving laurels and eclat. He endured it—this quiet, steel-eyed thinker with the 


slow smile—but he could get along without so much spotlight stuff. 


He began to do his own thinking in school; gave up engineering as too crowded; pedagogy 
because there was “too much baloney” in the education classes; decided on salesman- 
ship ... earning nearly all his way through William and Mary selling space in The Flat 
Hat, managing football programs and punching doorbells Summers for Pictorial Review. 
Out of college in 1927 and into the IBM sales training school where most of the boys were 
rushing into the roseate Tabulating Machines Division, he turned to time recorders on 
straight commission, where a man could write his own ticket. He has been writing his 
ever since. 


Born in New York's East Side, out of school at 11, little 
black-eyed Joseph Martinson now sells people of 
good taste America’s highest-priced coffee. After a 
lifetime in coffee (starting his own business at 16) he 
maintains high quality by his own expert testing (he 
rates as one of the six best tasters in the country) 
and by a buying skill so highly developed in 40 years 
of it that “they say” he can name the hillside any 


coffee comes from by looking at a bean. 


In his own office in his own seven-story twin building 


in the shadow of Wall Street he tests coffee samples, 
judging flavor by the smell, body by the taste, and 
so on, so that the Martinson blend shall be right. The 
travail of depression did not force him to lower qual- 
ity. His price remains the highest; proving people 
will pay for quality if they know it's there. To tell 
them, he distributed coffee in Rolls Royces until this 
year. His advertising is distinguished. But coffee, not 
phrases, does it best. So he gave away 32,000 full 
pound samples last year; will make it 100,000 in 1937. 
He lives in Cedarhurst, Long Island, now. He works 
from 8:30 to 6:00 five days a week, safeguarding that 
high quality, with no hobbies, no sports, little on his 
mind but coffee, and drinking more of it, he thinks, 
than anybody else in America. 


WS NNR ene ON RE AB CUE 


nisl 


Not “two-faced” but many-faced is Margaret Horan. That's one reason this dark-haired, 

dark-eyed., graceful New York Irish beauty is close to the national top as a photographers’ 

model helping advertisers sell merchandise. You may see her four times in a single maga- 

zine as an Ipana girl “lovely—until she smiles,” and as a model for Fisher Body, Camel, s 
and Allen-A., without realizing she is the same girl. Varying expression, facial make-up AN 

and coiffeur do it. Her versatility helps her earn $10 to $27.50 instead of the standard $5 Mw D 
‘or an hour-and-a-half. Her best week: $350 from General Electric radio. Her best year: $5,000. cE 
Margaret Horan’s work is pretty trying, posing furs in August; making “Summer” shots in & AN 


February. She has fainted from exhaustion holding poses for hours under studio lamp heat. 
Lejaren 4G Hiller scared her to tears last Fall making fright shots. 


Aiter high school she started as a store stock clerk, then modeled clothes, learning how 
to make things appeal to customers. That taught her to get into character with products 
she poses for now. She knows she can’t model forever, so she studies dress design and 
merchandising to start her own shop some day. 


- 


jy, es tio million babies 
are born every year. Most of these 
are their mother’s first children, 
some the second, third, and so forth. 
The chart (below) plots the first, 
second, third and fourth children by 
ages of mothers. As a measure for 
showing the starting point of the 
family market, this chart fairly 
shouts “buying begins in the twen- 
ties.” 


o 


—s 


ps PE 
Seg Se 
see Ss, 


Markets of people move in, on and out of the buying picture 
as the years go by. Magazines, like mighty combs, select their 
audiences at various points along the march. MODERN 
MAGAZINES, by careful editing, corral a concentrated unit of 
young women under 30 who are in their first years of buying 
experience. With years of purchasing ahead, these young women 
constitute the primary market for advertised merchandise. They 
are your je Customers, anxious to replace the older customers 
you lose from year to year... an unsaturated market for your 
product. 


AGE DISTRIBUTION OF MOTHERS AT BIRTH OF CHILDREN 


15 35 40 45 


. ce . 
THE PRIMARY MARKET WHERE BUYING BEGINS © SECONDARY MARKET WHERE BUYING DECREASES 
CEGEND =~ FIRST CHILD mms SECOND CHILD sommesmm THIRD CHILD sevmmmese FOURTH CHILD ecemmmens 


~ MODERN MAGAZINES 


FEBRUARY 15, 1937 


“Well, what diga know - CHESTERFIELD, too, 
is buying “THis WEEK’ and getting BOTH” 


ial Dial 


Here’s the combination 
that does the job?! 


Want to open up more markets, more outlets, more retail sales? 8 4 
Try a campaign that sells both the consumer and the trade. That 
covers the best markets and penetrates locally into each. In short, 
try THIS WEER, the one and only medium where you get BOTH— 


* A FIRST-CLASS MAGAZINE 


with 
* NEWSPAPER SALES PUNCH 


Here’s volume circulation of over 4.700.000 families ... but with 
newspaper concentration, thru 21 great metropolitan papers that 
average | in every 3% families in their 21 key markets * Here’s 
topnotch magazine fiction and articles that make the whole family 
read it and preserve it... combined with the newspaper’s local in- 
fluence that makes the family shop thru it, and the dealer tie up 
with it * Here’s rich magazine color at less than %¢ per family for 
a full color page ... plus newspaper flexibility that allows your 
color ad to change its local message in each city. 


In short, here’s BOTH for the price of one! 


“THIS WEEK” MAGAZINE _ 


[338] SALES MANAGEMENT 


How We Minimize the Problem 
of Wasted Selling Effort 


A selective selling plan in which salesmen concentrate on 


only the best dealers keeps sales continuously on the up- 


erade for Butler Brothers. 


BY Jj. 


FRANK MARTINO 


Sales Manager, Dallas House, 
Butler Brothers 


UR Dallas house of Butler 
Brothers has won for two suc- 
cessive years “Ye Mystic 
Cuppe,” the elaborate trophy 
award for seven-house leadership in 
the application of a new sales policy 
for drygoods and variety wholesalers. 
Back of the honor reposes a selling 
plan that has in one form or another 
proved alluring in specialty lines, but 
which is original, we believe, as back- 
bone for the merchandising of stock 
so diversified as that of Butler Broth- 
ers. 
This plan is based on the principle 
of concentration of selling effort, or 
selective selling. 


“Cream Separator” System 


Concentration, which is nothing 
more nor less than elimination, en- 
ables us to separate the wheat from 
thé chaff, and to devote our efforts to 
those accounts that observation and 
experience tell us are capable of de- 
velopment into profitable outlets for 
our merchandise. 

This application of concentration re- 
sults in a radical departure from the 
established selling practice of the or- 
dinary wholesale house of our type. 
Instead of sending salesmen into a 
territory to sell all concerns which are 
acceptable purchasers of our merchan- 
dise, we predetermine the accounts 
upon which our salesmen are to call. 
This predetermination means that our 
salesmen—who, incidentally, are re- 
ferred to as concentration salesmen—go 
into a territory with definite objectives 
set up and do not waste valuable sell- 
ing time on concerns from which we 
could never anticipate profitable vol- 
ume. 

The following outline will illustrate, 
in a general way, the mechanics of our 
selling: 

The territory which, in the case of 
the Dallas house, covers all of Texas, 
the southern half of Oklahoma, west- 


FEBRUARY 15, 1937 


ern portion of Louisiana and a small 
portion of eastern New Mexico, is 
sliced into sales zones. 

These zones are determined not by 
extent but by the accounts of requisite 
type contained in them, and upon 
which our concentration salesmen will 
be able to call at monthly intervals. 
Experience has shown that 60 well- 
developed accounts are about all that 
one salesman can adequately serve. 

Having established the zone, our 
next step is selection of accounts. A 
list of merchants handling merchandise 
distributed by Butler Brothers is sub- 
mitted to the credit department for its 
approval before being placed upon the 
salesman’s list. Here again, we take 
steps to avoid dissipation of effort by 
salesmen—for time was when salesmen 
in old line houses would spend three 
or four hours selling a retailer a bill 
of goods only to find later that the re- 


tailer’s credit would not stand the or- 
der. 


Running Record of Account 


Having been sanctioned properly by 
our credit department, the individual 
accounts are entered on MHandifax 
cards in order that we may have be- 
fore us a running record of the ac- 
count. This card reveals in detail the 
story of the salesman’s effort, personal 
sales, mail sales, house sales, specialty 
sales, and date of calls by the salesman. 
In the event that the account record 
does not show a tendency to develop 
into a profitable one and our corrective 
measures indicate that the fault is not 
that of the salesman, it is dropped 
and replaced by another one. 

In connection with this phase of the 
procedure lists are reviewed with the 
salesman the first of each year. To 
each account is assigned an account- 
quota which we agree is potentially 
attainable. Accounts with estimated 
quota too small to prove profitable 
are dropped, and accounts suggested 


by the salesman as replacements are 
submitted for credit approval for ad- 
dition to the list. 

Our compensation method is based 
on sales in excess of individual pars. 
This par is based on an allowable per- 
centage of the cost to sell, with “pay 
point” established to cover salary and 
expense allowance. Pars and allow- 
able percentages for selling vary, of 
course, according to territories and 
their state of development, but the 
average, as a whole, must be within a 
certain defined limit. 

Included in the general concentra- 
tion list, and forming the foundation 
upon which this list is built, are the 
accounts comprising our two voluntary 
chains: Ben Franklin League (variety) 
and Federated Stores (drygoods). 
These accounts, some 4,000 in num- 
ber in the entire United States, are 
the result of the conviction on the 
part of the heads of this business that 
the wholesaler of today should accept 
a new philosophy which is, to quote 
our president, F. S$. Cunningham: 


Wholesaler-Dealer Partnership 


“The wholesaler who wishes to 
play his proper part in the new 
scheme of distribution must in future 
treat the independent merchant as his 
partner. He must realize that his own 
success will depend upon his ability 
to help the independent man to remain 
in business at a profit.” 

It was the application of that phi- 
losophy that resulted in the creation of 
both of the voluntary chains, the mem- 
bers of which, operating individually 
owned stores under a franchise, agree 
to give Butler Brothers preference in 
making merchandise purchases. In re- 
turn for this preference, we, through 
our voluntary chain headquarters, act 
in an advisory capacity and supply 
merchandising assistance comparable 
to that received by units of national 
chains from their headquarters. 

This assistance includes physical 
store layout, window and interior dis- 
play; advertising counsel; promotions 
designed to create store prestige and 
build good will through the use of 
merchandise specials; merchandise 
control; accounting procedure; and 
even merchandise item selection. 

For example, in buying candles for 
a little boy’s birthday cake, it is more 
natural to select pink than black. Pink 
candles burn faster than black, and it 
is to our advantage to have the retailer 
select pink rather than black candles 
for his stock. To keep our customers’ 
buying habits directed toward these 
faster-turning items, we prepare spe- 
cial lists with spaces for checking and 
ordering. Also, we send out a sheet 


[3393 


Keo Sa 


A 


’ 


ET " 


“KNOW YOUR MARKET!” 


Here is the exclusive “McCall 

Method of Editing” that has 

made MecCall’s the best read 

women’s “Consumer” magazine: 

This situation is typical of American Step 1. McCall’s Field Editors 

, oi . f determine women’s problems 
social life. The conversation gives more than 


eh : and interests through nation- 
a clue to America’s economic problems. For, as men wide visits with women in their 
are the producers and earners, so women are the consumers homes. Step 2. Then McCall’s 
. ° Homemaki Sty i- 
and purchasing agents for their homes and for the nation. pomomaning and Shyte Authors 
: ties solve these problems. Step 3. 
McCall’s Editors dramatize 
these findings to make them most interesting and readable. 
° . ‘ ; ‘ -_ St . Me % search. tunerctewinn 
— in the home. Good business is dependent on maintaining oy Senco Meaty Ceeneeh, tneecentny: Oe tie 
home, checks up on the page-by-page reading. 


Production is no end in itself. Consumption must follow 


this balance between Production and Consumption. That is 
the reason for advertising —to increase Consumption. 


A BUILDING BOOM 

Likewise, the editorial purpose of McCall’s Magazine is THAT BUILDS SALES 
to educate the women of America to be better Consumers. Every month, McCall’s 
As such, the reader’s interest in the editorial and adver- architects design a new 
— : eli ‘ ‘ “Home of the Month,” 
tising pages in MecCall’s is one and interchangeable. Witn- which is erected complete 
OUT A LINE OF ADVERTISING. McCCALL’s WOULD STILL SELL by local builders. Some 64 
of these modern, livable 


MILLIONS OF DOLLARS WORTH OF MERCHANDISE. McCall Homes have been 
For McCall’s. as “The News Magazine for Women. aa ao seman Hamens te SE Ciena siete, aoe Yiemae 
: = by more than 500,000 prime home-building prospects. 
deals with the news of style— of food—of homes, furnish- 
ings and equipment— of child care and health—of beauty 
—of movies, stage and books. The kind of news that sells 
merchandise — Consumer News. 


FASHION NEWS THAT SELLS 


McCall’s is tied up with the largest selling 
dress patterns in the country. Merchants 
, . a ; know that McCall Patterns are a magnet for 
Women recognize the authoritative, practical helpful- the store and they're smart enough te pre- 
‘ o . ‘ . . ~ oi _ . . " . - , 
ness of MecCall’s, resulting from MeCall’s greater knowledge mote McCall-advertised products. McCall's 
a 7 _ ied publishes more full-color fashion pages than 
of their problems. That is why, page for page, McCall’s is : any other wounill’s waguaine — andl tas Sel 
the best read of “Consumer” magazines. \\ | the greatest gain in full-color advertising 
a pages of any women’s magazine ... last year 
465 or the year before! 
Emb. 1610 


Wherever women live and consume—there you will 
find McCall’s. Wherever you find homes above the bare 


subsistence level, where women are interested in reading PAGES THAT ARE SEEN MORE—SELL MORE! 

about the products of Consumption —there also you will All fiction is grouped together; 
. yyy . . é . ; all the | »smaking interests; 

find MecCall’s. For McCall's is the primary: consuming pope ers wempenr  Tawesr 


all the fashions and beauty facts. 
influence in more than 2,600,000 homes—the volume Each subject is a magazine in it- 


onsuming market f 4merica.* et as a self, complete with related ad- 

, 5 Y | - x . . . 

: , oe a ; a oS vertising and a beautiful cover. 
bs og , : : Magnetic McCall’s is “three 

*Beginning with the March issue —a new, more magnetic magazines in one,” with 2,600,000 

McCall’s—new color—new excitement—a new capitalizing of circulation—the volume con- 
> \S — Sa - ai es | 

the visual appeal. a suming market of America! 


MAGNETIC Me CALLS 


MORE meets FOR McCALL’'’S—MORE SALES FOR ADVERTISERS 


3 
and Make Em Pant 


for BIGGER SALE$ 


Sounds nutty, doesn’t it? Well, it 
is—but if you’re interested in bigger 
and better sales from your sales 
force don’t let that keep you from 
reading every word of this. 


You see, this Nudist Sales Contest 
has smashed all sales contest ree- 
ords from coast to coast. Sales man- 
agers have deliberately set “impos- 
sible” quotas (admitted that they 
did so, after it was over!) and the 
boys on the firing line have gone 
over the top. 


We wish you could read fifty or a 
hundred of the letters we have from 
big shots and pip-squeaks, both. We 
wish you could see the complete 
set-up for the Nudist Contest: 
framed, colored manikins, die-cut 
clothing, song sheets, colored 
badges, manuals (three of them!) 
and the advance mailing card. We 
wish—shucks! Tear off the corner 
below and mail today; better yet. 
wire, collect! (Be sure to state 
how many salesmen you employ!) 


BE SURE TO 
TELL HOW MANY 
SALESMEN! 


Fill os ee 
INVLO Your 
Vetterkead 
and mail te 


“HAHN- 
RODENBUR 


COMPANY 
SPRINGFIELD 
*ILLINOIS+ 


[342] 


of four items for each Saturday's spe- 
cial promotion—as table cloths, socks, 
jersey bloomers and shoes, and illus- 
trate specifically how to build up dis- 
plays of those items. 

Each month a promotional chart for 
the entire 30 days goes out to each of 
these merchants. Drawings on how 
to trim windows for holidays, how to 
tie-in windows with floor displays and 
similar data are detailed for easy com 
prehension. 

In fact, selectivity has come to char 
acterize our entire sales policy, and 
governs even our distribution of cata- 
logs (around 50% of our business is 
still done by catalog and mail selling). 
We have to determine what accounts 
bring in enough business to rate our 
catalog every month, or every two 
months, or Once a year, as in the case 
of resort stores. 

That this principle which encom- 
passes both selective selling and selec- 
tive merchandising is sound is evi- 
denced by the consistent increase in 
our sales volume since its adoption, not 
to speak of the saving it has effected in 
our salesmen’s time. 


Paint Manufacturer 
Finds Patman Act 
Boon, Not Bane 


(Continued from page 304) 


S¢ 


to the suggested resale price schedules. 
As a further aid the company has pre- 
pared a map which divides the terri- 
tory into zones; local, A, B, C, D, E 
and F, In zone A the resale schedules 
are 50 cents per cwt. higher than in 
local zone; in zone B, 75 cents; in 
zone C, $1, etc. This differential in 
the schedules covers the freight 
charges from either Chicago or St. 
Louis to those particular territories. 

As a sales aid, Reardon has just 
issued an elaborate hand-lettered loose- 
leaf folder for the use of its own and 
wholesaler salesmen. This lists its 
complete line of paints and points to 
its extensive national and _ business 
paper advertising campaign. The 
publications used follow: 

SEP, Better Homes & Gardens, Archi- 
lectural Forum, American Builder, 
American Painter & Decorator, Paint- 
ers Magazine, Western Paint Review, 
American Paint & Oil Dealer, Na- 
tionai Real Estate Journal, Building 
Supply News, American Lumberman, 
Sweet's Architectural Catalog, Hard- 
ware Age, Hardware & Metal (Can- 
ada), Canadian Paint & Varnish Jour- 
nal, Building Age (Canada) and Le 


Prix Courant. 


Further assisting sales Reardon gives 
the following supports: 


1. A direct mail campaign to a list 
of architects, interior decorators and 
painting contractors (of the whole- 
saler’s selection). 


2. Attention-getting stickers for the 
Reardon customer's letterheads, in- 
voices, etc. 


3. A complete assortment of ad- 
vertising helps such as mat service, 
folders, leaflets. 

Again the company has developed 
and is offering for the first time this 
year what it calls a “Reardon’s Water 
Paint Department.” This can be 
moved into a store and set up without 
altering shelving or fixtures. Built on 
a substantial base it has a backboard, 
shelves and compartments for display- 
ing the full Reardon line of water 
paint products as well as pigeon holes 
to hold color cards, folders and other 
advertising matter. It is described as 
“worth at least $60,” but is free with 
an order for an assorted ton of Rear- 
don products. This display rack is 
available to those handling the com- 
plete Reardon line. 

Reardon is also announcing for the 
first time a new hot water kalsomine 
under the name “Quick Cresto.” This 
dissolves instantly in hot water and is 
ready for use in 15 minutes. It has 
been customary to mix the old kalso- 
mines the night before using. 

To promote this a series of ten /post- 
cards are being prepared. These will 
be mailed each week to thousands of 
painters all over the United States. 

“When the publicity department of 
the World’s Fair in Chicago told the 
world of the great new discovery— 
casein paint—it overlooked a bit of 
history,” Mr. Reardon said to SM 
“We invented it away back in 1884. 
We've been making it ever since. 
More than 20 buildings at the fair 
were painted with our paint made ex- 
actly to the specifications we used 
more than 50 years ago.” 


McCall’s-Lux Fashions to Tour 


Jointly sponsored by McCall's Magazine 
and Lever Brothers, stylists are to exhibit 
the latest women’s costumes to 125-150 
stores throughout the country from February 
until June. A similar fashion show last 
year by the two concerns was viewed by 
approximately 150,000 women. Each of the 
costumes, day, evening and sports, is made 
from McCall’s printed patterns and the fab- 
rics have been tested in Lever Brothers lab- 
oratory and guaranteed “Luxable.” It is 
expected that the stores cooperating will 
run 175,000 lines of newspaper advertising 
in promoting the exhibition. Textile manu- 
facturers whose products are used and the 
press saw a pre-view of the show at the 
Hotel Lexington, New York, February 4, 
before it started across the continent. 


SALES MANAGEMENT 


“ 


LOIN TEE 


< 


me The C’men / 


raised the root 


..and uncovered the DIAMOND MARKET 


ITH a list of American Magazine 

subscribers in hand, Credit Men 
visited 31 key cities . . . and, figura- 
tively speaking, raised the roof. 

They discovered that eighty-three 
per cent of The American Magazine 
readers either own their own homes or 
live in single dwellings . . . that most of 
them have charge accounts . . . which 
is just another way of saying that they 
out-buy the average man and woman 
about three to one. 


They found that the majority of the 
Diamond Market are “preferred credit 
risks . . . the kind of people who buy 
regularly, and promptly pay their bills.” 


Unencumbered by a crushing burden 


THE 


of old debt, the Diamond Market can 
use current income to buy currently 
advertised goods. So, their response to 
advertising is broader, less reserved. 


Leaf through the pages of The 
American Magazine and you'll see at 
a glance why it attracts the better ele- 
ment in every neighborhood. Synthetic 
“‘smartness”’ is absent. In its place are 
stirring articles—lively, true-to-life fic- 
tion—and interesting, useful features. 


The American Magazine, as its name 
implies, is the zational monthly maga- 
zine of the better American families. 
That’s why it has always played such an 
important part in the advertising pro- 
gramsof thenation’sleadingadvertisers. 


HIGH 
INCOMES 


MEDIUM 
INCOMES v 


Low 
INCOMES 


Concentrate on the DIAMOND 
MARKET... the heavy buyers 
of Branded Merchandise... 
The American Magazine audience is like 
a diamond in shape and value. Extend- 
ing from top to bottom of the national 
income triangle, it 1s wide in the middle 
where sales are greatest; tapers at the 
top where there are fewer people; tapers 
at the bottom where selectivity is all- 
important because there is a decreasing 
market for most nationally advertised 
products. A profitable market through- 
out—a concentrated market of con 
sumers who buy freely, pay promptly. 


American Magazine 


The Largest 25¢ General Magazine in the World— Average Net Paid Circulation More Than 2,100,000 


THE CROWELL PUBLISHING COMPANY, 250 Park Ave., New York 


FEBRUARY 15, 1937 


Publishers of: COLLIER’S .. WOMAN'S HOME COMPANION . 


THE AMERICAN MAGAZINE... 


THE COUNTRY HOME 


Copr. 1937, The Crowell Pub. Co 


{343} 


NBC COVERS THE 


EAST OF 
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SIKESTONKN 
KENNETT 


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SHREVEPORT- 


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NBC Crew on the flood scene 


Only NBC had the benefit of the 
nationwide facilities of RCA and 
its family members. These vast 
resources — including regular and 
special equipment and personnel 
NBC to ser- 
L800 miles of 
flooded areas along the Ohio and 


—were enlisted by 


vice more than 


the Mississippi. 


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SALES MANAGEMENT 


i 


FLOOD FRONT... 


to keep a waiting world informed 


**... 1. humbly salute radio for its tremen- 
dous contribution in this hour of need... 
The complete story of radio’s contribution 
to flood relief as yet cannot be recorded but 
sufficient reports have been received to in- 


dicate that in the saving of lives, the safe- 
guarding of property and in the raising of 
funds, radio and the splendid men and 
women associated with it played a major 
role ... Radio has done a magnificent job.” 


From a speech by Anning S. Prall, Chairman of the 
Federal Communications Commission, over NBC Networks 


More than 100 Pickups from 21 Cities in 11 States 


The first flood broadcast was made by NBC at 
Kennett, Missouri, on January 20th. It was the 
only one that day—and the first of many NBC 
broadcasts during the week that followed! 
From every point, NBC Microphone Crews 
~announcers, commentators and engineers— 
kept a waiting world informed. They broad- 
cast from ’planes .. . from boats in the tide- 
washed floods of Main Streets ... from mobile 
units which often replaced the crippled radio 


transmitters in the cities of the affected areas. 

Over the great NBC Blue and Red Networks 
of 116 stations sped more than 100 broadcasts 
in that one week. Broadcasts ranging from 
10 minutes to | hour described conditions as 
they developed. American Red Cross appeals 
brought instant and generous response to the 
stricken. Crisp news summaries crackled into 
the air from coast to coast. America heard the 
news—N BC was on the scene. 


NATIONAL BROADCASTING COMPANY 


A Radio Corporation of America Service 


FEBRUARY 15, 1937 


[345 } 


Newspaper’s Party: A General 
Foods salesman, aided by a 
newspaper, arranged it so that 
several hundred youngsters had 
a Mickey Mouse party at a movie 
theatre, with empty Post Toast- 
ies cartons the token of admis- 
sion. 


What Cooperation May the Advertiser 
Expect from the Newspaper? 


Many newspapers have merchandising services which are 


available to advertisers. 


Intelligently used, they can often 


increase returns from space investments. 


BY FRED J. 


S a newspaper advertiser—we 
. accept the premise that your 
firm is one for the sake of 
our argument—are you taking 
advantage of the cooperation offered 
by newspapers to their advertisers? 
Perhaps you haven't yet realized what 
services newspapers make available to 
their advertising clients or that there 
does exist a well defined cooperation 
between the two. Most newspapers 
are ready and willing to offer adver- 
tisers much more than just copy and 
layout space. They will go to bat with 
you with help you never suspected, 
both from their advertising staffs and 
their various editorial departments, if 
only you know how to go after that 
help. 

Before we get too deeply into this 
subject of newspaper-advertiser coop- 
eration, let us make clear here the 
point that the same cooperation cannot 
be demanded, or even expected, from 
every newspaper published. A newspa- 
per is an individual institution, wholly 
independent of every other news- 
paper (with the exception of chain- 
owned papers), so obviously there will 
be some variation in the cooperation 
that you can get from different news- 
papers. You would expect it. There 
will be differences not only in the ex- 
tent and kind of cooperation given, 


[346] 


WRIGHT 


put also in the efficiency of that co- 
operation, depending on local mer- 
chandising practices and dealer atti- 
tudes and problems. Some newspa- 
pers offer merchandising services to 
their advertisers; others do not, but 
confine their cooperation to market 
statistics and data and to expert ad- 
vice on advertising practices and tech- 
niques. 

In the last analysis there are bui 
two ways to sell a product—through 
salesmen and through advertising. 
Both are working toward the same 
end, therefore both should take paral- 
lel tracks to reach that end. Say the 
newspaper is your advertising medium. 
Then get your salesmen ‘‘in” with your‘ 
newspaper advertising, send them to 
the newspaper office to make them- 
selves known and acquainted until it’s 
Bill and Tom between them and the 
advertising manager—and the publish- 
er also, in smaller localities. Perhaps 
you have already been following such 
a practice. Salesmen within the past 
year or two have been waking up to 
this idea pretty rapidly, and we know 
a good many advertisers whose sales- 
mea have adopted this back-patting as 
an established rule. 

Now that we have established the 
personal contact between the sales or- 
ganization of your business and the 


advertising staff of your newspaper, 
let's ask the newspapermen just what 
they can and will do to help you se- 
cute the greatest possible results from 
the advertising in the territory you are 
responsible for—if you are a salesman 
-—or any territory which both you and 
your mewspaper are interested in. 
From the position of a sales organiza- 
tion or an advertiser, let’s investigate 
every angle through which we can 
reap additional results from newspaper 
advertising, whether it be through 
merchandising activity on the part of 
the newspaper staffs, or simply the 
benefit of their local influence and 
knowledge of the market. Remember, 
newspapers know their markets and 
they know their dealers and whole- 
salers. 

What are the details of newspaper 
cooperation? On the merchandising 
side, consider your percentage of deal- 
er distribution in the markets where 
your advertising is running or is to be 
released. Most of your salesmen run 
up against a few stubborn or indiffer- 
ent dealers who are not carrying your 
goods. Then, the newspaper in each 
of these markets may be willing to 
send one of its staff men with your 
salesmen to call on the unstocked deal- 
ers and through his personal influence, 
representing the paper, help persuade 
those dealers to stock your goods. 

This will be established on two 
counts: First by showing the dealer 
proofs of the advertising copy you are 
going to run or are running in the 
local newspaper to make your goods 
sell locally; second, by the influence 


exerted by the newspaper through the 


mutual obligation and services which 


SALES MANAGEMENT 


HEARST DAILY PAPERS 


Albany Times-Union 
} Atlanta Evening Georgian 
| Baltimore Evening Nens-Post 
| Boston Daily Record 
| Boston Evening American 
} Chicago Evening American 
Chicago Herald and Examiner 
Detrort Evening Times 


Examiner 
Herald & Express 
Wisconsn News 


dmerican 


| 

| Los Angeles 

| os Reagelve 
Milwaukee 

| New York 

| 


Washington 


Albany 
Atlanta 


Times-Union 
American 


Baltimore Imerican 


Boston Adve r 
Chicago Herald and Examiner 
| Detroit Times 


Examiner 


Los Angeles 
York 


Imenican 


Washington 


New York 
New York 
Oakland 
Omaha 
Pittsburgh 
Rochester 
San Antonio 
San Francisco 
San Francisco 
Seattle 
Syracuse 
Washington 
Times 


New York 
Omaha 
Pittsburgh 
Rochester 
San Antonio 
San Francisco 
Seattle 
Syracuse 


Herald 


Daily Mirror 
Evening Journal 
Post-Enguirer 
Bee-News 
Sun-Telegraph 
Evening Journal 
Evening Light 
Examiner 
Call-Bulletin 
Post-Intelligencer 
Evening Journal 


Herald 


HEARST SUNDAY PAPERS 


Sunday Mirror 
Bee-News 
Sun-Telegraph 


1 


Post-Intelligencer 
Americar 


~ 


FEBRUARY 15, 


1937 


The HEARST Market 
than any one fi 


RECENT STUDIES have revealed that the 
Hearst newspapers reach a much bigger mar- 
ket than the 
means to supply. Advertisers can use the 
Hearst newspapers alone and reach 
than 30,000,000 people. 

This is a tremendous market. It buys so 


average advertiser has the 


more 
many cigarettes, for instance, that no one 
manufacturer has the facilities to supply it. 


And not only is the Hearst market a big 
market—but it is also unusually responsive. 


HEARS 


m) dD C 


nigel” 


~ 
- 


gan dane” ot 
sche 


buys more cigarettes 
rm could supply! 


The Hearst editorial and news appeal are 
almost as uniform in spirit as a national 
magazine. Built to a set formula... all re- 
flecting the ideals of William Randolph 
Hearst . . . and employing the most widely- 
read group of feature writers in America... 
they inspire a unanimity of thinking and 
acting among Hearst readers that can be 
found nowhere else in the newspaper world. 

A tremendous national advertising 


appeal can be made to the Hearst market. 


NEWSPAPERS 


READ BY 30,000,000 


PEOPLE 
[347 } 


rt of album tO 
It contains 


"]y HAVE SENT a SO 
our advert 
photographs of nt 


Collier 
The Active Market. 

rom view, We snapped them as 
for Collier's» paid, and 
turned aways No attempt at selection. 
We took them &s they came. And 1 think 
these me 


you'll agree that n and women 
Look exactly like the Active Market I've 


been telling you about. 


+ any of these photographs 
ey were snapped without 
iver of privacy. But, 
assoc 


"y can't prin 
here pecause th 
permission or wa 
if you like, one of my 
pring the to your office- 
minutes you can flash across 
of miles, looking ®* people in 


of buying Collier's. 


jates will 

In a few 
thousands 

the act 


is costly to gat 
Wetve beer 


ders as 4 


ugitive aata 
plentiful. 
ur res 
aid camer 


"Such f 
and none too 
talking 2 lot about © 
market. s a can 
which & 
adulation." 


Here’ 
ives you % chan 


Yours fo 


MR. X 


her 


ce to audit our 


r Action! 


- ‘ 
or sag CROWELL PUBLISHMOup, 
THE COUNTRY HOR 


Tt B/ = <— - 
= {}§ -~_y ej <j SN —— NN 7. 


é 


— PAPANY 250 Park Avenue, New York ° Publishers of COLLIER’S ° WOMAN'S HOME COMPANION ° THE AMERICAN MAGAZINE 
PRY H The Largest Magazine Audience in the World — More than 9,000,000 Circulation 


Copr. 1037, The Crowell Publishing ¢ 


should always exist between the local 
dealer and the local newspaper. The 
merchant listens to his ally, the news- 
paper, especially where the newspaper 
is in the habit of helping its advertis- 
ers, because the merchant knows from 
experience that goods backed by the 
newspaper staffs are pretty likely to 
move. It’s to his interest to stock 
such lines. 

Frequently, even on_ nationally 
known lines, distribution in backward 
spots has been stepped up from 50% 
to 100%. We could name several na- 
tional advertisers who have had such 
experiences. The matter of dealer dis- 
tribution is perhaps accomplishment 
number one for the newspaper. Addi- 
tional distribution is likely to mean 
additional volume even without adver- 
tising support, but with advertising 
support it is still more important. And 
if you are just starting to secure dis- 
tribution on an item, such cooperation 
on the part of the new spaper will be 
invaluable. 


Use Papers’ Route Lists 


Where the services of the newspa- 
per men are not required or are not 
available for calling on dealers with 
your salesmen, the salesmen can at 
least make good use of a route list of 
dealers provided by many newspapers. 
These route lists are great time-savers 
and by their use you avoid overlooking 
dealers that might be of importance 
to you. Nearly all newspapers furnish 
lists of grocers, druggists and wine 
and beer outlets. Recently a Buffalo 
newspaper published a booklet con- 
taining the names and addresses of 
approximately 3,500 liquor licensees in 
the Buffalo territory which comprises 
22 counties in western New York. 

Next, how about the jobber situa- 
tion? If you haven’t a jobber in a 
certain territory and want to secure one 
and go into the market more intensive- 
ly, the newspaper can usually assist you 
or your salesmen in securing a jobber 
—again because of the friendship, co- 
operation and mutual obligations 
which exist between jobber and news- 
paper. You must, of course, have an 
advertising program to be shown and 
promised to the jobber, both as an in- 
centive for the jobber to take on your 
line and also for the newspaper to 
assist you in interesting the jobber. 

A third possibility, at the time of 
starting an advertising schedule, will 
be for newspapers to send letters to 
the trade, together with proofs of all 
or part of the ads which are to run. 
In many cases these proofs will be 
printed up in the form of an elaborate 
broadside to accompany the letter call- 
ing attention of all dealers in an en- 


{350} 


tire trading radius—both those who 
are already stocking your goods and 
those who are not—to the advertising 
support your brand or brands are re- 
ceiving in the local territory, and the 
consequent expectation of larger and 
more easily secured volume. Some 
newspapers will do this at their own 
expense, even to paying the postage. 
Most, however, will require that your 
firm pay the postage or some other part 
of the cost. 

As another service to their adver- 
tisers newspapers may send merchan- 
dise staff workers out to put up dis- 
play or window cards on occasion, 
perhaps at the beginning of an adver- 
tising campaign, in all dealer stores. 


nection with foods, cosmetics, medi- 
cines, and other items in fields having 
numerous outlets. 

In the case of large copy for news- 
paper advertisements, proofs of one or 
more of the big ads may be run off, 
sometimes on heavy paper, to be dis- 
tributed to dealers for hanging up in 
front windows or wherever the dealer 
designates. Ad-proof posters link up 
with the appearance of the copy in the 
newspapers and bring the advertising 
to the customers’ minds again when 
they come into the store. 

Some newspapers publish monthly 
“trade journals’” reproducing the copy 
of their national advertisers and pub- 
lishing sales and merchandising news 


Town Crier to. the 
Trade: Good promo- 
tion of newspaper 


campaigns makes deal- 

ers tie-up with win- 

dows and_ counters. 

Here’s the way it was 

done with beer in two 
cities. 


This important service is usually free, 
but worth the cost even when a fee 
is charged. For example, not long ago 
a Wichita newspaper placed display 
cards for a brewery in all of its own 
outlets in Wichita and in addition to 
that sent a letter and a broadside to a 
total of 625 beer outlets in the Wichita 
trade territory. And the newspaper 
paid the postage, which is a little out 
of the ordinary for so extensive a mail- 
ing. 

On its own initiative a newspaper 
will make surveys for all advertisers 
in a given line, or at the request of 
some particular advertiser. Sometimes 
a survey of distribution and sales rank 
of a product is made for “before” and 
“after’’ data, to check results of ad- 
vertising. At other times a survey may 
be made in the middle of a campaign 
just to find out how well the product 
is moving and to report particularly 
what the dealers are saying about it. 
This is a very common service in con- 


about promotion activities of the manu- 


facturers. These trade journals are 
distributed to dealers in all fields and 
help to keep them advised on what is 
being done for them by national ad- 
vertisers. The constant argument that 
goods thus advertised sell easily and in 
profitable volume appeals to the dealer, 
preferring as he does to handle goods 
for which he does not have to employ 
too much sales expense and effort to 
move. There is no charge for “trade 
journals,” either for the reproduction 
of advertising copy or for the publicity 
and promotion given. 

Perhaps one of the most common of 
all services that newspapers afford 
their advertisers is the boosting of 
products through editorial departments 
—feature pages and sections devoted 
to food, drugs, cosmetics, etc. Most 


SALES MANAGEMENT 


| 
5 


of them have a great deal of educa- 
tional power and serve to make ad- 
vertising considerably more effective. 
In food sections most newspapers will 
gladly publish either recipes furnished 
by an advertiser or refer to the adver- 
tiser’s product in recipes prepared by 
staff writers. This they do in interest 
both of the manufacturers and of their 
women readers. The more ideas the 
housewife can glean from the newspa- 
per on Food Day, the more she reads 
and likes the paper. And the same 
holds for beauty departments and other 
special departmentalized columns and 
sections. 


Other Happy Tie-ups 


There are a number of ‘‘stunts” that 
newspapers have worked out for their 
advertisers. Take, for instance, the 
popular theatre parties for children. A 
newspaper can usually arrange with a 
theatre to accept five cents (or maybe 
a dime) for admission of any child 
who brings a box-top label from a 
package of the product that the news- 
paper is promoting. Suitable news 
space will be given the event by the 
newspaper—chargeable to institutional 
advertising—and the theatre in turn 
cooperates for its share in this pub- 
licity by giving the reduced price. 
Promotional tie-ups of this kind are 
nearly always highly successful. They 
result not only in a great deal of valu- 
able publicity for the manufacturer 
and his products but they also bring 
about increased sales. Usually there is 
no cost to the manufacturer for an 
event of this kind other than for his 
regular advertising schedule. 

As a few of the services and mer- 
chandising helps that the majority of 
newspapers of the country are ready to 
give to advertisers, the suggestions we 
have made here for securing coopera- 
tion only bring out that the object of 
newspaper advertising is to sell goods. 
The average newspaper, therefore, has 
long since adopted the policy of train- 
ing its advertising department staff to 
undertake to see that advertisers do 
sell goods in profitable volume as a 
result of advertising investments. 


Gorton Starts Lenten Drive 

Gorton-Pew Fisheries Co., Gloucester, 
Mass., has begun a special push on its sea 
food products in newspapers and in grocers 
trade journals for the Lenten season. Some 
65 dailies will be employed once and twice 
a week: and space in Chain Steve Age and 
Progressive Grocer, backed up by _ broad- 
sides and house organ publicity, will urge 
retailers to feature Gorton’s various fish 
Products. “With more than 20,000,000 
people obliged to abstain from eating meat 
during Lent . . . the trade has an excep- 
tional opportunity to make money with 
Gorton’s sea foods,” says H. B. Le Quatte, 
agency in charge. 


FEBRUARY 15, 1937 


We Want to Advise the 


Management of a 


Small Business 


The business must: 


|. Be headed by men 
(a) who own or control it 
(b) who are young 
(c) who are Christian 


(d) who don't think they know it all. 


2. Be in a line of business in which 
(a) Development is increasing 
(b) Market conditions are changing 


(c) Distribution channels are not so crystallized as to 


be inflexible. 


3. Have a difficult sales and advertising problem, but 
(a) Have a certain record of sales 


(b) Do not employ an advertising agency 


4. Be located in or near Chicago, New York, Philadelphia 
or Boston. 


To such a firm we offer guidance, based on a long record of ex- 
perience, which we shall be glad to reveal in detail. 


At the first conference we shall lay these qualifications before you, 


and shall expect in return to be shown evidence bearing upon the 
factors listed above. 


We.are not an advertising agency. 


Our remuneration, in cases where we believe the situation is promis- 


ing, is based on a percentage of increase in sales volume, over a 
period. 


Please address communications to 


BOX 516 
SALES MANAGEMENT 


420 Lexington Ave. New York, N. Y. 
[351] 


ed 


2QOOK FIRST-:- 


GETT 


JENKINS 


cu 1804 
gon svete sun 
seonzt * 


os of se8* 


Jenkins Valves 


, tee unos 


No. 5 A series of discussions of TYPICAL JOBS 
GOOD BUSINESS PAPER ADVERTISING 
HAS DONE .. . prepared by advertising 
agencies with outstanding experience in the 
use of business papers . . 


. sponsored by 


these leading business papers: 


VALVES 


... but since we 
do not fill orders direct we 
are transmitting this to our 


Distributor for attention. 


ot Lb. RICKARD 


¥ 
os oN 


AMERICAN BUILDER and BUILDING AGE, Chicago COAL AGE, New 
BAKERS WEEKLY, New York FOOD INDUSTRIES Y 
BLAST FURNACE and STEEL PLANT, Pittsburgh THE FOUNDRY, Offend 
BOOT and SHOE RECORDER, New York RESTAURANT Mi 
BUILDING SUPPLY NEWS, Chicago { 


THE IRON AGE, 
CHEMICAL and METALLURGICAL THE JEWELERS' Cl 
ENGINEERING, New York 


ork 
LAI 
New York 


Advertisers or their agencies may have copies of the preceding num nth 


— 


2 
£27] J ECIPROCITY is the sound basis for get- 
ES Hie ting industrial dealer support. Dealers 
- like to support the products of manufac- 
turers who support them. Of course, a good 
product and a fair dealer policy, rigidly 
adhered to are essential, but alone these 
are not enough to merit the dealers’ whole- 
hearted support and good will. In addition, 
manufacturers must build up a knowledge 
and acceptance of their products in the 
markets to which their dealers have to sell. 
With a thousand and one items in stock, it 
is not possible for the dealer and his sales- 
inen to do adequate missionary work on 
any particular product. 


Display and merchandising material fur- 
nished by the manufacturer is helpful, but is 
insufficient for a thorough job. What is 
needed in every instance to complete a 
manufacturer's support of the dealer is the 
continuous use of adequate advertising in 
appropriate business papers. When this 
advertising brings in the industrial supply 
dealer as the logical source of supply for 
the product advertised, it is welcomed by 
the dealer and is a big factor in getting and 
holding his support. 


|. DEALER SUPPORT 


The soundness and success of the policy 
described has been demonstrated over a 
long period of time by our clients, many of 
whom are consistent users of business paper 
space for getting dealer support as well as 
for building a demand for their products. 
Business paper advertising such as that 
reproduced here has helped to win for these 
advertisers the whole-hearted support of 
the best industrial supply dealers through- 
out the country. 


With well edited business papers pene- 
trating into practically every branch of 
industry, a manufacturer has direct and 
effective media for telling his story to the 
very men to whom the industrial supplies 
dealer must sell. Those who make adequate 
and proper use of these media are laying a 
firm foundation for winning dealer support. 


President 


RICKARD and COMPANY, INC. 


Key men of RICKARD and COMPANY, INC. whose experience in 
industrial advertising and marketing totals more than 125 years. 


New LAUNDRY AGE, New York 
STRIER" York MACHINE DESIGN, Cleveland 
“ , Ban MACHINERY, New York 
ce. Nf » New York NATIONAL PETROLEUM NEWS, Cleveland 
Rs’ CMURKEYSTONE, THE NATIONAL PROVISIONER, Chicago 


THE PAPER INDUSTRY, Chicago 


_ numiffin this series upon request—Sales Management, 420 Lexington Ave., New York. 


POWER, New York 
RAILWAY ELECTRICAL ENGINEER, New York 
SALES MANAGEMENT, New York 


STEEL, Cleveland 
» » 


GOOD BUSINESS PAPERS 
HELP MAKE GOOD BUSINESS 


Ad Campaigns 
(Continued from page 320) 


ings This is not a re-broadcast for 
western audiences, but ts entirely sep 
irate and supplementary 

lwice-a-day broadcasts are a rarity 
in radio, yet Procter & Gamble looks 
upon them with favor. 
dol, the Chipso, 
Ivory soap, and Camay are dished out 
in double portions 


Besides Oxy 


company s Crisco, 


Blackett Sample Hummert, Inc., ts 
went for Oxydol 


Celluloid Expands 


Celluloid Corp. “founder of the 
plastics industry,’ began advertising 
Protectoid, transparent wrapping, last 
year Fortune, Time and 


Week were 


Bu Vili an 
used, as well as trade 
papers and direct mail, The series 
described the venerable firm and_ its 
product, which most people thought 
was a generic term, so satisfactorily 
that it continues through this year. 
Lumarith, the company’s cellulose 
icetate plastic, moreover, makes it bow 
in those publications and in Howse 
Aitkin-Kynett Co. is the 


which induced the ultra-con- 


& Garde) 
iwenc\ 
servative Celluloid to beat its own 


drum 


MICHIGAN'S FIFTH 


\0 


Klein, 50 Kast 42nd 
Lutz, 435 N. Michigan 


“Visit St. Louis” 


With the ink scarcely dry on the 
report of its 1936 community advertis- 
ing, the “Visit St. Louis’ committee of 
that city is preparing an even more 
ambitious campaign, including news- 
papers, outdoor, radio, and supple- 
mentary selling helps. Sponsored by 
the Chamber of Commerce, and di- 
rected by John Ring, Jr., director of 
the Industrial Bureau, copy featured 
places to go and things to see in ‘the 
City of a Thousand Sights.” 

Instead of depending on travel and 
tourist bureaus, railroads, and hotels 
to bring visitors, the city administra- 
tion joined with business interests in 
subscribing a fund. Newspapers, 61 
in 33 larger midwest and southwest 
communities, were used. Further, 
smaller ads appeared in 134 papers of 
97 Missouri and Illinois towns. 

Then 110 five-minute invitations 
were broadcast over 11 radio stations. 
Some 341 posters and painted boards 
of 217 towns; plus trade paper ads; 
plus direct mail; plus “Visit St. Louis” 
emblems on business envelopes helped 
to spread the story. Kelly & Stuhl- 
man, Inc., prepared the copy. 

“In response to requests we distrib- 
uted 160,000 copies of a folder de- 
scribing the city,’ reports Mr. Ring. 


LARGEST MARKET 


TO REACH IT YOU MUST 
USE THE SAGINAW NEWS 


Saginaw is Michigan's fifth 
largest retail market, yet the 
Saginaw News covers it com- 
pletely at one paper cost. 

City circulation (latest net 
paid) is 21,128 compared to es- 
timated total families of 21,542. 
Total A.B.C, is 28,514 and latest 
total net paid is 30,554. 1936 
advertising linage topped 1955 
by 18%. 

Saginaw 1936 employment 
reached an all-time high 
5,000 more employes than in 
1929. 

For detailed information on 
the important Saginaw Market, 
write or telephone nearest Booth 
representative. 


Wherever you find a 
Booth paper, you have 
the answers to two major 
questions: (1) Is_ the 
market worthwhile? (2) 
Is there a single news- 
paper that covers it com- 
pletely? BOOTH means 
BOTH! 


Street, New York City 
Avenue, Chicago, Illinois 


The advertising brought thousands of 
people and millions of dollars.” 


Upsetting the Soap-Boxés 

“Business has been the whipping 
boy of soap-box demagogues, and 
many people have come to accept the 
picture of business as a vague, sinister 
force lurking in some distant spot 
ready to pounce selfishly at any sign 
of individual progress,” says Merle 
Thorpe, editor of Nation's Business. 

To overcome this misconception and 
impress upon the public the fact that 
the interests of business and the aver- 
age citizen are identical, his magazine 
will employ newspapers and outdoor 
posters in 32 cities to pound out the 
slogan, “March With Business to Bet- 
ter Times.” 

Arthur Kudner, Inc., is agency. 


Hydra Menace? 

A five-headed hydra is slowly en- 
circling American business and adver- 
tising. In the February issues of 
women’s magazines are no less than 
four separate ads depicting the Dionne 
Quintuplets: (a) Brushing their teeth 
with Colgate’s tooth paste; (b) guard- 
ing “their budding beauty” with 
“only” Palmolive soap; (c) eating 
Karo syrup; (d) avoiding “fidgety 
nerves, constipation, poor appetite 
with Quaker oats. 

Will these ‘World's Darlings” (ac- 
cording to Karo), possessed of “great 
dark eyes, fringed with long, curling 
lashes, rosebud mouths’’ (according to 
Palmolive), extend their dominion to 
an ever-widening roster of products? 
Do we face a future in which publica- 
tions will print nothing but the 
quintessence of quintuplets ? 


W oodbury’s “Moon” 

Jergens-Woodbury Sales Corp. spon- 
sors a return engagement of Elsie Hitz 
and Nick Dawson in a Monday to Fri- 
day afternoon serial on the NBC-Red 
network for Woodbury’s soap. “‘Fol- 
low the Moon” its a “drama of 
thrills, love, and adventure.” The 
stars pulled over 250,000 requests, en- 
closing nine cents in stamps, for 
Woodbury’s face powder two years 
ago. 

Grocers are being advised to hitch 
on to the program by ads in Chai 
Store Age (grocery edition), National 
Grocers Bulletin, Cooperative Mer- 
chandiser, and Progressive Grocer. 
Consumer ads continue in Good 
Housekeeping, Woman's Home Com- 
panion, Ladies’ Home Journal, Cosmo- 
politan, This Week, The American 
Weekly, and the other ‘Woodbury 
Show” Sunday nights over NBC-Red 
chain. Agency is Lennen & Mitchell. 


SALES MANAGEMENT 


IN THE BRASS RI 


Many persons live on a merry-go-round. They 
take monotonous rides to nowhere, pursuing a 
free whirl into an aimless existence. Publishers, 
impresarios, or editors who merely “give the 
people what they want” provide no more than 
wooden horses for millions of the alert and 
successful. 


Public taste may run in circles, but a large sec- 
tion of the public always has been interested in 
more than a merry-go-round literary fare. It 
demands a reading diet which nourishes a pur- 
poseful life. The National Geographic Magazine 
is proof that a cultural publication can be 


successful permanently in serving millions of 
idea-seeking readers. 


Since 1899, The National Geographic Magazine 
has been planned for the influential millions who 
are eager to read authoritative, inspiring and 
superbly illustrated articles about the world in 
which they live. Today this Magazine has a net 
paid circulation which exceeds one million. Each 
issue, by a conservative estimate, is read by 
five million persons. 


Here you will find the First Million Families of 
America. 


THE NATIONAL GEOGRAPHIC MAGAZINE 


WASHINGTON, D. C. 


“Goll the “Ficst Million Ficst™’ 


FEBRUARY 15, 1937 


3333 


A Business Paper Advertisement Writes Home 


DEAR BOSS: 
Say, these babies in Construction aren't fooling! 


Riding around in ENGINEERING NEWS-RECORD is like being brass ring 
in a merry-go-round, — everybody grabs at me. And no rest ahead. 
Why Boss, do you know the 1937 Construction forecast is six and a 
half billion dollars? That's one hundred and twenty-five million 

smackers a week, Boss, in round, square, or oblong numbers! 


These ENGINEERING NEWS-RECORD boys certainly get around with the 
Big Beams and the Right Rivets. Honest, I cozy up to men here whom 
I couldn't have tagged with a Coast Artillery rifle in some maga-— 
zines. What's more, I sell ‘em. (Even your salesmen say, "Nice 
going, kid", when we meet.) 


I get such a hand—around that I'm limp in the binder, Boss. 100% 
coverage of the subscribers who really buy in Civil Engineering 
and Construction. (Of course, I miss seeing the women now and 
then — you know how salesmen are.) 


I thought I'd get a rest in the office tonight, Boss. But the Top 
Transit here just told his secretary to stick me in his briefcase. 
That means marks by morning — I'll be lucky if he doesn't tear me 
out altogether! ENGINEERING NEWS-RECORD gives you the longest ride 
for the money you ever got. It ought to pay you to boost my 

travel schedule to 52 trips a year, instead of 39. How about it? 


J Trlhou 


P. S. ENGINEERING NEWS-RECORD is only 
one of the 24 McGraw-Hill Publications. 
Better take a look at ‘em, Boss. 


—= 


SALES MANAGEMENT 


In Business Papers 


you can talk the language 


of the men who buy 


Advertise First in the Papers Men Have to Read! 


When a contractor buys trucks, he wants tough ones 
that can “take it” in the smashing haulage jobs the 
other side of the detour signs. If you were trying to 
sell him your trucks, would you meet him in the 
barber shop and talk about a beautiful paint job? Or 
would you find him on the job and tell him how your 


trucks move yardage under conditions just like his? 


Every trade “talks its own” 


Business papers are edited by men close to the field 
involved. They have to be, to command attention and 
respect. Many business paper editors have worked in 
the shop, or with the tools of the trade. They not only 
know the vernacular, but also the problems of the 
industry at first hand. 

Business papers, therefore, bring to the reader, in 
his own language, vital information about his work, 


his job and his fellow-workers. Men read these papers, 


not for entertainment or relaxation, but for knowledge 
and advancement in their life work. They read them 
because they want to make more money for their 
business — and for themselves. 

Relieved of the burden of mass circulation among 
the thousands, perhaps millions, who play no part in 
buying for business, the business paper takes your 
advertising message at the lowest possible cost per 
contact right to the men who influence buying. And 
only in business papers can you talk to the buyer in 


the language of his own specific business. 
b= we OW 


McGraw-Hill Publications are edited by men who are 
widely known and accepted as authoritative writers in 
the fields they reach. These magazines are bought — 
and paid for — because they are the valued business 


tools of the men who read them. 


McGraw-Hill Publications 


“Where your advertising dollar goes to work...not to waste” 


Chemical and Metallurgical 
Engineering 

Construction Methods and 
Equipment 

Electrical Contracting 

Electrical Merchandising 


American Machinist Electrical West 
Aviation 

Bus Transportation 
Business Week 
Coal Age 


Electronics 


Electrical Wholesaling 
Electrical World 


Engineering and Mining Journal 
Engineering News-Recor 


Power 

Product Engineering 
Radio Retailing 
Textile World 
Transit Journal 


Factory Management and 
Maintenance 

Food Industries 

Metal and Mineral Markets 

Mill Supplies 


McGraw-Hill Publishing Company, Inc., 330 West 42nd Street, New York, N. Y. 


FEBRUARY 15, 1937 


The Flood Means That You 
Must Check, Revise Mail Lists 


If you do a considerable volume of cir- 
cularizing, | presume that you are following 
the example of a majority of the mail-order 


operators and omitting, temporarily, the 
names of customers and prospects in the 
flooded areas of the Ohio and Mississippi. 

Of course, a little later, when these com- 
munities begin a program of rehabilitation, 
they will afford a tempting market. But 
right now flood victims are concerned 
chiefly with the problems of immediate 
existence. 

However, a thing 
to bear in mind is 
that all mailing lists 
(and this applies 
particularly to lists 
of individuals) in 
inundated sections 
will be materially 
affected. A good 
many of the refu- 
gees probably will 
never return to their 
original homes. 
Even business 
houses, in some 

Maxwell Droke cases, will be forced 

into new quarters. 
Thus one of your first considerations should 
be to clean your lists. 

Your problem is twofold. First, you 
want to remove the deadwood which ac- 
cumulates in any list, even under normal 
conditions. Second, you want to obtain, 
wherever possible, the latest address of your 
customer or prospect, so that your list can 
be brought up to date. In a situation such 
as this, the usual ‘Return Postage Guaran- 
teed” notation is not sufficient. It is here 
that you will find postal form 3547 of con- 
siderable value. This is a form on which 
the post master at destination will give you 
the latest forwarding address on your Third 
Class mail, if the individual has moved. 
You know, of course, that Third Class mail 
cannot be forwarded (except by payment of 
additional postage) and that such mail does 
not commonly receive directory service in 
the post office at destination. 

The following notation, while rather in- 
volved, does cover every contingency. This 
form should be printed on the envelope, 
preferably in the lower left-hand corner, 
when your mailing goes out under Third 
Class: 

“POSTMASTER: If addressee has 
moved notify sender on FORM 3547, post- 
age for which is guaranteed. In case of 
removal to another Post Office, do not 
notify the addressee, but hold, notifying 
sender on FORM 3547 amount of forward- 
ing postage required. This postage will be 
forwarded promptly.” 

With such explicit directions you should 
get back the mail sent to prospects who 
have been lost, strayed or shut up shop. It 
will take a little time to get the flood areas 
in working order again. 


[358] 


BY MAXWELL DROKE 


Another Hotel Says “Thanks, 
Call Again” Most Gracefully 


Speaking of hotels and hospitality, as we 
were a few issues ago, my good friend and 
associate, Mr. T. Harry Thompson (see 
page 306) deposes and states that tl’s 
friendly letter merited—and got—a reply 
from him: 

“We are writing to ask whether your 
recent visit with us at the Drake was an 
enjoyable one in every respect. 

“We value the privilege of your patron- 
age, and therefore gladly invite your criti- 
cism and suggestions, which have been a 
guide to us in the past. It is only through 
your help and friendly cooperation that we 
can improve our service. 

“The good will of our patrons and 
friends is one of our greatest assets. It 
will be our sincere endeavor to merit your 
confidence and friendship, as we are anxious 
to have you consider the Drake your 
‘home-away-from-home’ whenever you are 
in Chicago.” 


Testimonials Hot Off the 
Griddle Are the Latest 


And now it’s dated testimonials! 

I have before me a form letter from E. 
M. Schroeder, of Brass Products, Inc., 
which emphasizes the freshness of accom- 
panying testimonial letters. Not a bad 
idea: 

“Under Certain Conditions 
Testimonials Tell You 
A True Story 


Dated Testimonials 
“are true testimonials! Note recent 
dates on those enclosed from a few of our 
many highly satisfied Pour-Scour operators. 
The last word from men who know.” 


Here’s a School That Knows 
How to Sell Intelligently 


We scarcely expect to find an educa- 
tional institution indulging in a program 
of modern merchandising. But this letter 
from The Oxford Academy of Individual 
Education, Pleasantville, N. J., stacks up 
well, I think, with sales letters in any field: 
“Dear Parent: 

“Your grandfather in his buggy traveled 
no faster than Julius Caesar. Suddenly, 
the automobile—and our generation was 
unshackled. Miles shrivel into minutes, 
and the humblest family may own the 
continent. 


Standing Invitation 


Mr. Droke, is always glad to criti- 
cize sales letters and direct mail mes- 
sages for our subscribers. There is 
no cost or obligation for this service. 
Address him in care of SALES MAN- 
AGEMENT, enclosing a stamped, ad- 
dressed envelope. 


“Education in the schools today is where 
transportation was in our grandfather's time 
—using the plodding methods that were in 
vogue when Caesar crossed the Rubicon. 

“Science has made giant strides in chem- 
istry, engineering, physics—in everything 
but the method of imparting this knowledge 
to the student. These are still in the horse- 
and-buggy era, in spite of all advances in 
modern psychology and the mental sciences. 

“Yet just as great advances have been 
made there—by the few who know how to 
use them. We have come to believe that 
there is no such thing as a backward stu- 
dent of normal intelligence—there is merely 
backward teaching! 

“We have taken all kinds of students 
who had failed to make good in school. 
Some had not learned how to study; others 
apparently could not concentrate; a few 
were so backward in classes, that they had 
to repeat years and subjects—some even 
had been rejected by the better schools as 
“not college material.” Yet, after a year 
or two under our direction, every one of 
these students passed his College Board ex- 
aminations with high marks, and a number 
of them became the sonor men of their 
classes! None of our students ever failed 
in college... . 

“And al! because we individualize as well 
as modernize education. By psycho-metric 
tests, we determine each student's particular 
aptitudes. Then we show him how to use 
these individual aptitudes to master his 
Studies. . . . 

“We have printed a few copies of a 
booklet, ‘Individualized Education,’ which 
tells of this new method, as revolutionary 
in education as was the auto in transporta- 
tion. A line from you, on your letterhead, 
will bring a copy, with our compliments.” 


Making It Easy for Inquirers 
Has Always Been a Smart Idea 


In my criticism of sales letter campaigns, 
I still encounter from time to time those 
individuals who say, “We don’t want to 
enclose a return card or a Business Reply 
envelope. If we make it too easy for them 
to reply, we'll get a lot of worthless in- 
quiries.”” 

Well, as I have pointed out before in 
these columns, this sounds logical enough. 
It is a beautiful theory, but it has one flaw 
—it just won't work! By making it diffi- 
cult for a prospect to reply, you do get 
fewer inquiries. No question about that. 
But my experience in a great many tests 
doesn’t indicate that these inquiries are of 
higher calibre. Quite the contrary, in fact. 
You'll find, I think, that in general the 
curiosity seeker and the hopeless prospect 
will go to more trouble to answer your 
communication than will the bona fide 
prospect who is ready to talk business. For 
one thing, he has more time. So, by cut- 
ting out the time-honored aids to action, 
you merely increase your inquiry costs—and 
perhaps lose a number of opportunities to 
do business. 


SALES MANAGEMENT 


ap 


—~ — 


The Fourth Dimension 
of Advertising Space 


Articles with plenty of bounce, news as fresh as this morning’s milk, pictures with what 
it takes—let those catch your eye when you shop for advertising space. Because THEY MAKE 
READERS . . . But every page of magazine space has a quantity as well as a quality 
dimension; and if you don’t know what it is, you may buy space that’s as flat and umdynamic 
as the paper on the wall. Who? What? Where? How Many? It was to answer these ques- 
tions definitely, clearly, beyond cavil that the C. C. A. was organized. . . . The Controlled 
Circulation Audit is an independent organization. Its sole duty is to analyze, classify and 


summarize the facts about controlled circulations . . . to do this periodically, impartially, 


completely and clearly . . . The publisher of each magazine listed below can show you 
C. C. A. data about his magazine. And the C. C. A. insignia on his masthead, rate card, 
and Standard Rate & Data listing is a dependable guide to known value. 


This Advertisement Is Sponsored and Paid for by the Following C.C.A. Publications 


AGRICULTURAL LEADERS ELECTRIC LIGHT & POWER LIQUOR STORE & ORAL HYGIENE 
DIGEST ELECTRICAL DEALER DISPENSER POWER WAGON 
AIR CONDITIONING ELECTRICAL MANUFAC- LUBRICATION & PRINTING INDUSTRY 
Combined with OIL HEAT TURING MAINTENANCE PROGRESSIVE GROCER 
AMERICAN DRY CLEANER EXCAVATING ENGINEER MACHINE DESIGN RAND McNALLY BANKERS 
AUTOMATIC HEAT & AIR FLEET OWNER MACRAE'S BLUE BOOK MONTHLY 
CONDITIONING GOLFDOM MEAT RUG PROFITS 
BAKERS REVIEW GRAPHIC ARTS MONTHLY MEDICAL ECONOMICS SHOE STYLE DIGEST 
BETTER ROADS HOSPITAL TOPICS & BUYER \fETAL CLEANING & SODA FOUNTAIN 
COMPRESSED AIR INDUSTRIAL EQUIPMENT FINISHING SUPER SERVICE STATION 
MAGAZINE NEWS MILL & FACTORY SYNDICATE STORE 
DRAPERY PROFITS INDUSTRIAL POWER MODERN MACHINE SHOP MERCHANDISER 
DRUG TOPICS INDUSTRY & WELDING MODERN PLASTICS TIRES 
EARTH MOVER JOBBER TOPICS NATIONAL JEWELER WOOD PRODUCTS 
SL aT TRES , 
RIS cee 


FEBRUARY 15, 1937 


CONTROLLED CIRCULATION PUBLISHERS 


[359] 


Utility Finds Every Customer 
Contact a Sales Opportunity 


When the Blackstone Valley Gas & Electric Co. replaced crews of 
meter readers, collectors and salesmen with district representatives 


who performed all three functions, sales jumped and customer 


relations improved greatly. 


EALIZING that a utility must 

create load and merchandise 

sales, but mindful of the fact 

that this most valuable asset 
could be used to much greater advan- 
tage, Blackstone Valley Gas & Electric 
Co., Pawtucket, R. I., decided to 
turn its entire sales, credit and 
meter-reading practices upside down. 
It formulated a plan which now pro- 
duces 90% of company merchandise 
sales and indirectly is responsible for 
70% of all gas and electric appliance 
sales in the entire area. 

The problem of the company is sim- 
ilar to that of other utilities. Its terri- 
tory is highly industrialized with 70% 
of the homes representing mill workers 
of eight to ten different nationalities, 
some of whom neither speak nor 
understand the English language. Em- 
ployment conditions are variable, since 
a family of five grown-ups may find 
themselves unemployed, or they may 
bring in $70 or more weekly. 

Formerly the company reached 
the territory with three different sets 
of employes: Meter readers, collec- 
tors, and salesmen. The housewife 
knew neither man very well and the 
salesman going “cold turkey” from 
door to door, met with much resistance. 
And selling became of secondary im- 
portance. 

Under the new plan the company di- 
vided its territory into 45 districts and 
placed each in charge of one man, to 
be known as a district representative. 
These men read meters, collect bills, 
make minor repairs to appliances in 
use in the home and sell the greater 
part of all gas and electric appliances 
sold in the entire area, producing a 
gas and electric load of major im- 
portance. 

Instead of reading 175 meters a day, 
as under the old plan, each man reads 
about 50, giving time to cultivate the 
friendship of Mrs. Housewife. Once 
in on the ground floor, sales resistance 
is greatly lessened and sales are built 
up through regular monthly contacts 
rather than by one-call sales visits. 
Housewives buy from these men when 


[360] 


ily circumstances. - They know the 
approaching silver wedding anniver- 
sary of the Browns means a grand 
chance to sell a refrigerator for an 
anniversary gift. And there's the com- 
ing blessed event at the Smith’s. That 
means an excellent chance to sell a 


washing machine. Sales talks are not 
wasted; they are well directed. 

Each man is compensated with a 
flat salary for his routine work and a 
bonus for sales. Called the ‘Load 
Building Compensation Plan,” this 
bonus system applies to the sale of gas 
and electric automatic water heaters, 
ranges, refrigerators, and ironer sales, 
this selection being made to sell load- 
building appliances. (Covt. on p. 362) 


they might slam the door in the face 
of some house-to-house salesmen. 
The difference lies in knowing fam- 


The First All-Steel House Moves to Its Site— 
Ready for Living Within 24 Hours 


TT 


i I 
Ea 
7 | b hg 
| | s 


a SR gt A CL EEE SE He 
Being towed to a level plot by tractor and trailer . . 


’ 
* 


Where its 41 tons are lifted off by a tractor crane and the owner moves in. 


R. G. Le Tourneau, Inc., Peoria, builds these five-room, electrically welded steel 
homes for its employes, but may offer them to the public. Each has a garage, heating 
and cooling equipment, is fire-, dust-, termite-, and weather-proof. Aboard the trailer 
the furnace was going. Shortly after the house had been set down on its 32 x 44-foot 
foundation, water and electric connections had been made, drapes were up, floors 
carpeted and the family moved in. Other houses now under construction will be 
launched on the Illinois River, flowing past the factory, and towed on their own 
bottoms across to a Le Tourneau colony site. Architect Ephraim Field predicts a 
great future for them. 


SALES MANAGEMENT 


Green Light iv 
Metropolitan 
— Rhode Island 


: Hae 


“ “METROPOLITAN Rhode 
Island?” But that won’t startle the 
sales manager, who knows how indus- 
trial centers and residential communi- 
ties stretch out in almost unbroken 
succession from Providence .. . cross 
the Massachusetts border . . . embrace 
within the market's influence approxi- 
mately a million consumers. 


He knows, too, that 340,000 people, 
half of Rhode Island’s population, half 


its retail outlets and more than half 


the sales, are concentrated in A.B.C. 
+ 3 6. Providence . . . that within the 15 miles 
radius are another 250,000 — alto- 


gether, seven-eighths of all Rhode 
Islanders . . . metropolitan heart of the 


market. 
i (al 


ro Upwarp sales trends accel- 
= erated sharply as year-end industrial 
activity and payrolls mounted ... R. I. 
new car sales, 30.4% ahead for the year 
1936, finished with a record breaking 
December, up 79.5% ... Oil burner in- 
stallations in Providence increased 
38.9% ... Department store sales, av- 
eraging 8.8% advance for the year, 
finished 11.5% up for December .. . 


indicating total 1936 R. I. retail sales J 
of $240,000,000 or better. PROVIDENCE 

New circulation highs for the Jour- ‘ JOURNAL-BULLETIN 
nal-Bulletin papers—in 19 out of 20 : : : k ; 
A.B.C. Providence homes, 2 out of 3 in) “= Dominating New England’s 
Rhode Island. Green light . . . we’re Second Largest Market 


i it... will y ide? 
— inl ctuanlenaaial Representatives: Chas. H. Eddy Co., Inc. 


pee :; New York, Chicago, Boston, Atlanta 
R. J. Bidwell Co., San Francisco, Los Angeles 


FEBRUARY 15, 1937 [361] 


Each sales job carries a specific 
bonus, an automatic water heater 
bringing as much as $20, a range, $10 
and a refrigerator netting $4 to $12, 
depending upon the size and whether 
or not it is an electric or gas unit. 

In arriving at these cash bonuses, 
each sale is given a point value, an 
automatic water heater sale having a 
credit of 22 points, a range, 16 points 
and a refrigerator sale either 7 or 13 
points. If the quarterly total of these 
points exceeds the man’s sales quota, 
he receives an extra 40% of the total 
bonus earned, providing a strong urge 
to exceed sales quotas. 

An unusual feature of this bonus 
plan is that district men receive these 
same bonus and point credits even if 
the sale is made by a local dealer, 
since the company considers these men 
are indirectly responsible for all sales 
in the area whether or not they are 
company sales. Thus, the district man 
gets $20 plus point credits when an 
automatic water heater is sold by the 
ABC Hardware Co., Smith’s Depart- 
ment Store or by Jones the Plumber. 

The idea behind the plan is logical. 
The utility wants first of all to sell 
load. The particular appliance used 
makes but little difference, since com- 
pany profits on merchandise sales are 
small compared to load profits. This 
feature of the plan makes for good- 
will between the utility and local 
dealers of appliances, since the utility 
salesmen are helping the dealers to 
sell. It removes the utility-dealer fric- 
tion which throws the “wet blanket” 
on appliance sales in many cities. 

To obtain credit for sales, the dis- 
trict representative must file a routine 
claim, giving all details of the sale 


and installation with verification by 
the dealer. Dealer sales are re-checked 
by the company with the dealer for 
accuracy of records. Bonuses are given 
only on actual sales, temporary and 
trial installations are not eligible; ap- 
pliances must be installed and placed 
in use, thus insuring the sale of either 
gas or electric load. 

In addition to the bonus on major 
appliances, a commission of 5% is 
paid on sales of other company mer- 
chandise. And at times when special 
promotions may be staged, extra 
bonuses are given on featured items 
for a stated period. 

The bonus plan differentiates be- 
tween new and replacement sales, since 
new sales are strictly new load. A new 
range sale is defined as one of a new 
insulated range of approved quality to 
be used either in a newly-constructed 
house; in an old house when gas serv- 
ice is resumed after a lapse of nine 
months; when such renewals replace 
a fuel competitive to the company; or 
when a new range is purchased by a 
family just moving into the territory 
from outside, or just starting house- 
keeping. 

“Before long the district representa- 
tives had become thoroughly sales- 
conscious,” says William E. McCreery, 
general sales manager, in summarizing 
the plan. “And results became in- 
creasingly evident. Sales jumped and 
customer and dealer relations assumed 
a friendliness that was previously un- 
equaled. 

“These men are truly ambassadors 
of the company, representing the only 
regular sales force in the area. They 
sell, not only for the company, but 
for the local industry as well.” 


i RIE 1S OTE. 
f 


2 YARDS 


36 INCHES WIDE 


* BABY NEEDS | Be 
& SCREENIS 


*& STRAI™ 


Champs: The Wood- 
bury facial powder 
package, designed by 
Raymond Loewy and 
agents Lennen & Mit- 
chell, took first prize 
in the fourth annual 
“> & 10 Packaging 
Show,” sponsored by 
Syndicate Store Mer- 
chandiser. Points con- 
sidered by the judges: 
Sales value in open 
display; durability 
and protection to con- 
tents; low production 
cost; general appear- 
ance. The cheesecloth 
package won fourth 
prize. 


Organization News 
Philadelphia 


Members of the American Management 
Association met last week in Philadelphia 
to discuss “Industrial Relations: A 1937 
National Problem.”” The meeting, A.M.A.’s 
fifteenth annual personnel conference, was 
held at the Benjamin Franklin Hotel under 
the sponsorship of the Philadelphia Cham- 
ber of Commerce and the Philadelphia 
Personnel Association. 

Planned under the direction of Thomas 
G. Spates, director of industrial relations, 
General Foods Corp. and vice-president in 
charge of American Management Associa- 
tion’s division of personnel, the three-day 
program included discussions on: ‘What 
Management Faces Today in Industrial Re- 
lations Trends;” “The Formulation of 
Labor Policy and Standards by Industry”; 
“What Is a Practical Management Attitude 
toward Current Industrial Relations Prob- 
lems?’’; “Three Current Methods of Em- 
ployer-Employe Contact—employe represen- 
tation, trade union agreements, and admin- 
istrative supervision”; “Problems of Indus- 
trial Relations Arising from Social Security 
Legislation,” as seen by a lawyer, a comp- 
troller, and an industrial relations director; 
“The Economic Outlook as It Affects In- 
dustrial Relations and the Division of In- 
come”; “The Technique of Wage Negotia- 
tion and Adjustment’; “Developing a 
Supplementary Compensation Program”; 
“Building an Effective Executive Organiza- 
tion”; “The Foreman in the 1937 Situa- 
tion”; and “Establishing Profit-Cooperation 
Within an Organization.” 

Outstanding conference included speakers 
Thomas G. Spates; W. L. Batt, president 
SKF Industries, Inc.; Clarence G. Stoll, 
vice-president, Western Electric Co., Inc.; 
C. S. Ching, director, industrial and public 
relations, U.S. Rubber Co.; Edgar J. Kauf- 
mann, president, Kaufmann Department 
Store, Pittsburg; George Keller, director, 
industrial relations, Colgate-Palmolive-Peet 
Co.; Whiting Williams, consultant; Morris 
Leeds, president, Leeds & Northrup Co.; 
Robert B. Wolf, manager, pulp division, 
Weyerhaeuser Timber Co.; Dr. Geo. W. 
Taylor, Wharton School, University of 
Pennsylvania. 


Ft. Worth 


The National Federation of Sales Ex- 
ecutives is announcing this week plans for 
the seventh annual Southwestern Sales 
Managers Conference, to be held Friday, 
April 9, Blackstone Hotel, in Ft. Worth, 
Texas. 

“Getting the Job Done” will be the 
keynote of the conference, and tentative 
subjects to be discussed by prominent and 
successful sales executives from Chicago, 
St. Louis, Tulsa, Dallas, and Ft. Worth are 
the following: “What Makes a Great 
Salesman?”’ “Sales Manager’s Correspond- 
ence,” “Inspiring Salesmen to Think,” 
“More Sales Through Demonstrations,” 
“More and Larger Orders,” “Salesmen as 
Partners,” ‘Increasing Sales Through Con- 
tests,” and “Conventions That Bring Re- 
sults.” 

In charge of the conference arrangements 
are: T. J. Harrell, general chairman; Dave 
L. Tandy, vice-chairman; H. N. Fisch, pro- 
gram chairman; A. B. Vera, local attendance 
committee; Carl Wollner, out-of-town at- 
tendance committee; L. E. Davis, chairman, 
hotel committee; W. J. Clingman, welcome 
committee; E. C. Scott, entertainment com- 
mittee; and C. G. Cotten, publicity com- 
mittee. 


SALES MANAGEMENT 


Chicago 

Walter Daly, general sales manager, 
Manz Corp., spoke to the Chicago Sales 
Executives Club at its most recent meeting 
on the subject, “1937 As I See It.” A 
student of present-day economic problems, 
Mr. Daly is the author of a number of 
articles that have appeared in magazines 
and business papers. For eight years prior 
to his taking his present position he was 
sales promotion manager of the General 
Electric Refrigerator Dept. 


Toledo 


A Toledo chapter of the National In- 
dustrial Advertisers Association was formed 
recently by a group of industrial advertis- 
ers and advertising agency executives meet- 
ing at the New Secor Hotel, Toledo. 

Ralph L. Towne, sales promotion man- 
ager, Surface Combustion Corp., presided 
over the organization meeting. Elected to 
serve for 1937 were: President, Ralph L. 
Towne; vice-president, L. D. Ellingwood, 
Toledo Scale Co.; and secretary-treasurer, 
Richard C. Carr, Sun Advertising Agency. 

Regular meetings will be held on the 
first and third Tuesdays of each month, and 
the present roster includes 17 members. 


St. Louis 


“Competition Dressed in a Lion’s Skin’’ 
was the subject of a talk by George F. Til- 
ton, director of advertising and market re- 
search, Anheuser-Busch, Inc., before the 
Sales Managers’ Bureau of the St. Louis 
Chamber of Commerce last week. 

Mr. Tilton presented constructive 
thoughts and ideas on how to meet various 
kinds of competition through the right pol- 
icy, intelligent planning and aggressive mer- 
chandising, and illustrated his discussion 
with a 47-foot chart showing every known 
form of competition. 


New York 

Dr. Frank R. Coutant, president, Amer- 
ican Marketing Association, last week re- 
vealed some amazing facts about the New 
York market to members of the Sales Ex- 
ecutives Club of New York, gathered at 
the Hotel Roosevelt for their first Febru- 
ary meeting. 

New York is “The Most Tantalizing 
Market in America,” is the opinion of 
Dr. Coutant who has done outstanding re- 
search work for such firms as General 
Foods, The Borden Co., Procter & Gamble 
Bristol-Myers, International Silver Co., Col- 
gate-Palmolive-Peet Co., and scores of 
others. In his discussion, to which he gave 
the above title, Dr. Coutant brought out 
the point that New York City is a group 
of villages and that a salesman can not do 
a real selling job in the unique market 
until he has allowed for that fact. 

Dr. Coutant was introduced to the 
group by Frank M. Surface, director of 
sales research, Standard Oil Co. of N. J., 
and seated at the speaker's table were Dr. 
Daniel Starch and Dr. Louis D. Weld, 
marketing research experts. 

During the past two weeks directors of 
the Sales Executives Club have elected to 
new membership 41 executives. 


The Technical Publicity Association. Inc., 
met last week to hear H. M. Shackelford, 
vice-president in charge of sales promo- 
tion, Johns-Manville Sales Corp., discuss 
“Gearing Sales Promotion to Sales in the 
Heavy Industries.” J-M’s methods em- 
ployed and strategy followed in sales pro- 
motion were the subjects of Mr. Shackel- 
ford’s talk. 


FEBRUARY 15, 1937 


Gr the Diamond Sulilee of Votce Writing — 
0 


HE genius of Thomas A. Edison has man- 
ifested itself in many ways. Among his 
great contributions to the smoother, swifter 
conduct of business has been the miracle of 
Voice Writing . . . born sixty years ago. 
As the tempo of business raced faster and 
faster . .. as the factor of time grew more 
vital . . . the Ediphone became more valu- 
able to executives. Today . .. with its many 
improvements... it is an A B C of the sue- 
cessful business man’s equipment (provid- 
ing Added Business Capac- 
ity) —as easy to use as a 
telephone. 
With a Pro-technic Edi- 


phone, you can simplify, 


regulate, your responsibili- 


Industry all over the world reports the 


Ediphone Adds 20% to 50% to Business Capacity! 


ties. Correspondence, reports, inter-office 
memoranda are written at the very moment 
you are ready to dictate. Important matters 
are never forgotten. The completiomof your 
business day sees the completion of your 
business. And everything is accomplished 
with less effort! 

Executives are invited to Voice-Write with 
the Ediphone in their office on the “You- 


Pay-Nothing” Plan, and to request a free 


copy of Professor H. L. Hollingworth’s 
booklet, “Using Your Head.” 
ania... For details, Phone The Edi- 


phone, Your City, or address 
Desk §-17, Thomas A. 
Edison, Incorporated, West 
Orange, New Jersey, U.S.A. 


[363] 


HE trouble with most sales 
compensation systems is that 
they are not devised from the 
standpoint of the salesmen. As 
a rule they are laid out by bookkeepers 
or auditors or treasurers, entirely from 
the standpoint of inside men. Usually 
the system is gotten up so as to save 
work in the accounting department. 

I believe that is the wrong way to go 
about the matter. A fair sales com- 
pensation system cannot be planned in 
an office. I hold that 75% of the 
work of drawing up a compensation 
plan should be done in the field. The 
conditions in each man’s territory 
should be thoroughly studied before 
it is wise to say how he should be 
paid. What are the peculiar problems 
in his territory? What is competition 
doing? Have competitors some ingen- 
ious method of paying their represen- 
tatives? Can the salesman be offered 
any kind of incentive that may stimu- 
late him to overcome his special 
problems ? 


First, Watch Your Men at Work 


When working up a compensation 
plan, it is well to travel for a few 
days with each salesman. We always 
try to do this. Thus, we get acquainted 
with the men and usually gain their 
confidence. We learn how they feel 
toward their jobs and their employers. 
Generally they are quite frank in stat- 
ing their grievances. They are free in 
telling whether they are adequately or 
properly paid. 

When you live with salesmen for 
eight or ten hours a day, you gain a 
keen appreciation of them. You soon 
learn that only men of varied ability 
can make good at selling. You see 
how hard salesmen work, how well 
most of them stand in with their cus- 
tomers and how valiantly they battle 
for the interest of their company. 

You learn how pitifully little the 
office people know about their sales- 
men’s problems. You find out why 
salesmen are inclined to regard con- 
temptuously the letters they receive 
from clerks and sometimes, even, from 
under-executives. Often these letters 
exhibit such woeful ignorance of field 
conditions and of the mechanics of 
practical selling that it is hard to read 
them without losing patience. 

When you travel with salesmen per- 


{364 } 


How Shall We Pay Our Salesmen? 
Let Field Research Answer 


BY 
JOHN ALLEN 


MURPHY 


Find out what problems the 
salesmen are facing in the 
field and study the status of 
your competition before you 
draft a new compensation 
plan. That's the only way 
you can find a system which 
is fair to both the men and 
the house — and a system 


~ 


which will act as a real force 


in increasing sales. 


Sates MANAGEMENT subscribers may 
peel an eye for another article on the 
fair trade laws by William H. Ingersoll, 
whose discussion in the February 1 issue 
entitled “Resale Price Maintenance—How 
to Get It If You Want It” found so many 
interested readers. 

The second article, which will appear 
March 1, will answer such questions as: 

“Upon whom does enforcement of the 
Supreme Court’s decision rest?” “Will 
brand owners, generally, exercise their 
right to price maintenance?” “Which 
brand owners logically should adopt price 
maintenance?” “What makes the issue 
seem difficult to some brand owners?” 
“How will the situation work out?” 


haps the thing that strikes you most 
forcefully is how little time a salesman 
spends with his prospects. I have 
kept track of it for considerable peri- 
ods. Seldom does it run much more 
than an hour a day. We may hit the 
road at seven in the morning, and 
work until six in the evening and yet 
only 1/11 of those 11 hours is spent 
with buyers who have the authority to 
say “yes” to the salesman’s proposi- 
tion. 

Neither is the rest of the time 
wasted. The salesman may occupy 
every moment of it in going from one 
prospect to another, in trying to get 
to see the yes-and-no-men, in culti- 
vating underlings, and in eternally 
cooling his heels in offices and stores, 
waiting for buyers to bestow their 
favor on him. 


Home Office Not Always Right 


The letter from the office that most 
frequently annoys salesmen is the one 
that subtly infers that they must spend 
their time twiddling their thumbs. 
“Why didn’t you see so-and-so?” it 
asks, or “We have 18 prospects in 


Bingville. You called on only 11. 
What's the matter with the other 
seven?” 


If a salesman is worth his salt, he 
learned in his first year on the road 
that he must use his judgment as to 
the best way to cover the territory. He 
has learned to use his time to the best 
advantage. He tries to cover the more 
important prospects first. To succeed, 
he has found out that he must be prac- 
tical. Hence, he calls on the buyers 
who will see him or who are most 
likely to give him an order. Rarely is 
he able to make a presentation to all 
the prospects in a locality. Experience 
has taught the salesman that he can 
afford to give only so much time to a 
town and that when that time is up he 
had better move on, leaving the un- 
seen prospects for the next trip. 

This does not mean that salesmen 
are perfect, that they are always right 
and the office always wrong. On the 
contrary, salesmen are notoriously an 
inefficient lot. Our studies convince 
us that not more than 10% of all 
salesmen are doing as good a job as 
they could. Salesmen, themselves, 
would be the first to admit this. 

They grouse a lot against the man- 


SALES MANAGEMENT 


Only ONE choice for your selling job in the Oklahoma City Territory 


The Oklahoman and Times have the kind of sales record that first be able to sell himself. The Oklahoman and Times have Yemon- 


ualifies them inst: lace your sales staff. Their ability . a: . ‘ 
qualifies them instantly for a place on your sale e y strated this ability. By making themselves progressively more 
to do a selling job for you has been clearly shown by their ability 


attractive, more desirable, more welcome, they are today the South- 
to sell themselves. 
= ; ; , west’s largest, most complete, most powerful newspapers... a selling 
In ten years they have added 45,769 circulation . . . an increase 8 I P pape g 
of 24°. team that works most effectively and economically . . . the one and 


Before a salesman can sell anything for someone else, he must logical choice for your selling job in the Oklahoma City territory. 


OKLAHOMA PUBLISHING CO 


THE FARMER-STOCKMAN RADIO STATION WKY 


THE DAILY OKLAHOMAN 


OKLAHOMA CITY TIMES 


MISTLETOE EXPRESS 


NATIONAL REPRESENTATIVE— E. KATZ SPECIAL ADVERTISING AGENCY 
FEBRUARY 15, 1937 {365} 


YOUR ~~ e SCHEDULE 


isn’t complete unless it includes 


The Empire 
State’s 


Lowest Cost 
Major Market 


Troy, which ranks fourth in per 
capita retail sales among larger 
New York State cities, has with- 
in the 4-mile radius of its A.B.C. 
City Zone more than 119,324 


consumers. 


The Record Newspapers — 
Troy’s sole dailies—give better 
than 4-out-of-5 coverage of this 
great audience, reach thousands 
more in the A.B.C. trade area. 


One-medium blanket coverage 
at only 10c a line makes Troy 


the Empire State’s lowest cost 


31,918 Copies Daily major market. ' 
Average Net Paid Circulation 
Sept., 1936, A. B. C. Audit 


THE RECORD Newspapers 
THE TROY RECORD Morning 
THE TIMES RECORD Evening 


J. A. VIGER ° ADVERTISING MANAGER 


[366] 


agement, it is true, but only because it 
does not seem to appreciate the prob- 
lems they are up against and because 
it is doing so little to help them over- 
come these problems. In altogether 
too large a percentage of cases, the 
management is actually handicapping 
the salesmen. It has them making col- 
lections, or following up inquiries that 
turn out to be from children who 
wrote in for a sample to use in their 
doll houses, or shooting trouble, or 
servicing customers, or gathering sta- 
tistics, or making market studies, or 
doing other chores that should not be 
done by salesmen. Salesmen are often 
asked to do so many things of this 
kind that they have little time left for 
selling. 

It drives salesmen into the crying- 
out-loud attitude if with a situation 
such as this prevailing and nothing 
being done to correct it, their employ- 
ers put in a so-called scientific com- 
pensation plan, and then, beaming 
with the self-satisfaction of a philan- 
thropist, declare, “‘Now we know you 
will be giving us some real business 
from your territories.” 


Salesmen Can’t Be Errand Boys 


Another situation we encounter fre- 
quently is that management is expect- 
ing its salesmen to do too large a 
share of the selling job. It expects 
them to do the pioneering, the trail- 
blazing, the education and the promot- 
ing as well as the selling. A sales- 
man’s job is to sell, to get business, to 
get names on dotted lines. And if the 
factory wheels are to be kept running, 
the salesman must get these orders 
today, not next week nor next year. 

All promotion work—that is adver- 
tising, the education of the consumer, 
introducing the product to the pros- 
pective buyer, paving the way for the 
salesmen, must be done by the com- 
pany. To have the salesmen do any 
part of it is to slow them up, waste 
their time, and keep them from get- 
ting those all-important orders. Pay- 
ing a salesman scientifically is not 
going to make him work more effec- 
tively if management is falling down 
on its part of the job. 

Our studies, preliminary to the or- 
ganization of a compensation system, 
have usually revealed that salesmen do 
not like a complicated plan. Unless a 
salesman understands the method of 
payment under which he is working, it 
loses all value as a means of stimu- 
lating him. Unless a salesman is able 
to tell at any time by simple calcula- 
tion just what he is earning, he be- 
comes discouraged and may even con- 
clude he is being fooled by a clever 
scheme. Most compensation systems 


SALES MANAGEMENT 


JANUARY RECORD 
Tie-Up Advertising Sold from DEALER ADVERTISING ‘i 
Note: Use this sheet to list mats, etc., illustrated in Deaten Apveatisinc and sold to B 
420 Leagan Avenee, New Yee ne cnPerminm ; 
et ue, ‘ 
ise in an in H . 
— afs[e[--—-—  § Ave Dealers Pushing 
_ Gugerseelh Wate 4 \|4% | 77/37 feos De 8 
Geb mands Poacher _\934 \ 1/2 |\Y/3/37| Huff F Stare RS 
bello 211 | Wx. |'/8/s7| thei ood le i Your Product 
— Hh tenth fisuad 32| 2 |Wefs7| frase He Lwggin Ff 
ae brush |32| 2 |af7 i AA 5 3 ° e 
LA decth frsh |22 (0 tal ~~ _ [ihe This? 
_ Lh Zee Bud |32| 2 VE} 2, 1 
AAG Dooby Hrrtere | 1314 WB | Kewemy Drug. VI 
oe Dagerse€l Wy J} \/6/37 | flaw Dwg G. e 
B44 Baud fed w2t| / |Ye/27| abace Dug D. Wy 
W. hating fae’ | 12 | 6/37 | Eneone cy le Morrarere |i 
i lo | lo | 4 P27 | hbase Det Le : H 
ip, Corn Haat 22 ; fol Oak Dove Plarauseg i . ERE is the January record of 
roy py ge po —_ Anat Esanshar §. 4 one newspaper in placing mats and 
Akh Morke Peaches \93 | 2 Sr eh desoe feeeney ij electros which manufacturers adver- 
pelle 77| 2 |A2h|Hut Fred Shu ¥ tised in the Winter issue of DEALER 
| i ar (22 | 2 |\he/s7 Gabe Grove larmacy | ADVERTISING. Nearly three thou- 
dh tan — - — ings Farman. Me sand lines of extra business for the 
Gllheudt Sale wags <4 Wate | Akard newspaper — an equal amount of 
} O42 Com Plast, s22| 2 |1347 | Gah Gurrc/laums, If effective local sponsorship for the 
Wblard Belting francesa] (2. [23/27 WeWenamin. | nationally advertised product! 
Sealer yson| 4 \f15/37 hudlrt dey \ : ‘ ° 
: = a fae i Monterey is a city of 20,000 in 
: fie oh sch it wanted Are. MERALD_ —— _ Southern California. The Peninsula 
| ? a Lp fhm | Mme of tans * Herald is an evening daily with a cir- 


ng & culation of 4,298. The Winter issue 
B of DEALER ADVERTISING has a three- 
months life— December, January, 
February. 


Advertising at the point of sale is 
the most effective advertising. A good | 
trade name plus the sponsorship of a 
good local store insures results. 


If you are not getting retail tie-up 
advertising in every city where your 
goods are sold it will pay you to in- 
vestigate DEALER ADVERTISING, affl- 
iated with Sales Management .and 
the Bill Brothers Publishing Corpora- 


tion. 


DEALER 
ADVERTISING 


420 Lexington Avenue 
NEW YORK CITY 


i i te a 


FEBRUARY 15, 1937 


PREMIUMS 


that turn 


RADIO LISTENERS 


STAR MOLDS 


SALT AND PEPPERS 


ry 


MEASURING 
CUPS 


CAKE 
TURNERS 


4 n Ul 
' »~ 


BISCUIT CUTTERS 


COOKY 
PRESSES 


NEWEST ALUMINUM 
GADGETS 


Here are premiums that make radio 
programs pull and pay. Small alumi- 
numware items . . . in a wide variety 
. by the makers of MIRRO, the 
finest aluminum, Attractive to your 
prospects because of their high qual- 
ity. Practical for you because of their 
surprisingly low cost. 
The premium is that extra induce- 
ment that galvanizes interest into 
immediate action . .. turning radio 
listeners into buyers. 
But it must be the right premium! 
To get immediate results and big 
results, your premium program 
must be as carefully planned as 
your radio program itself. That 
takes experience. 

The Aluminum Goods Manufac- 
turing Company has the right pre- 
mium ... aad the right plan. . 
based on years of experience and 


close contact with leading radio 
advertisers. Why not invite an 


A.G.M.Co. representative to call? 
PROMOTIONAL DIVISION 


7} 4 ne, 
ALUMINUM GOODS 
Sd 44 ty Lh Cru C, LIVIA 

/ Makers of MIRRO- / 7 
MANITOWOC - WISCONSIN 


that we read about are altogether too 


involved. They may be fine examples 
of accounting art, but as agencies for 
getting salesmen to do their best they 
are about as useless as the professor of 
Greek at a football game. 

If the field study is well done it will 
have answered these questions: 


(1) Are all of the salesmen suited to 
their jobs? Were they selected 
intelligently and trained properly? 

(2 What are the problems of the 
salesmen? 

(3) What are the problems of the 
business ? 

(4) Is the management giving the 
men all the support that they 
need? 


With the answers to these questions 
we are ready to set up the compensa- 
tion plan. We work on the theory 
that a compensation plan is only one 
factor in the organization of a selling 
campaign. As we have already seen, 
poorly selected or badly trained men 
will not make a success of their jobs, 
no matter how paid. A company that 
does not recognize its salesmen’s difh- 
culties and does not help them to over- 
come them, will not be benefited by a 
scientific compensation scheme. 


Ten Problems to Solve 


The first move, then, is to see that 


| all these factors are recognized and 


that the right equation for the success 


| of the business is established. Perhaps 


a few of the salesmen should be re- 
moved and replaced with better tim- 
ber. Perhaps all of the salesmen 
should be put through a course of in- 
tensive training. Perhaps a sales pres- 
entation and other literature for the 
salesmen should be prepared. Maybe 
territories should be realigned. Maybe 
an advertising campaign should be 
launched. The 101 other factors that 
comprise a well rounded sales cam- 
paign should be checked and over- 
hauled if necessary. Not until all this 
has been done, has the new sales com- 
pensation plan much of a chance of 
doing any good. 

This done we are ready for the plan. 
The ideal compensation system should 
aim toward these ten objectives: 


) It should increase volume. 

) It should reduce selling cost. 

) It should stimulate salesmen to 
do their very best and give them 
the same incentive as though they 
were in business for themselves. 
It should develop salesmen and 
make bigger men of them. 

It should make it necessary that 
each salesman pull his own 
weight in the boat. 


(6) It should eliminate guesswork 
from the payment of salesmen 
and provide a yardstick for giving 
them their true desserts. 
It should eliminate sentimentality 
and personal feeling from the 
handling of salesmen, and give 
the sales manager a sort of 
mathematical means of judging 
the value of his men. 
It should provide a graceful 
means of removing a salesman 
who is not earning his way. He 
removes himself by not being 
able to support himself, under the 
system. 

It should provide an automatic 

means of solving some sales prob- 

lems. 

(10) It should provide a compara- 
tively simple method of putting 
selling pressure where it is 
needed most at a particular time. 


Ideal Plan Is Three-Sided 


A system does not have to ac- 
complish all of these objectives to be 
a good plan. It must accomplish some 
of them. It will if it contains enough 
incentive. 

As a tule, the best payment plan is 
composed of these two parts: 

(1) Regular compensation 
(2) Special compensation 

It is from their regular compensa- 
tion that the salesmen must live. It 
is that part of their compensation that 
the salesmen are sure of getting if they 
make good at all. The amount of 
regular compensation that salesmen 
get, depends of course, on their sales. 
Special compensation consists of spe- 
cial payments for special perform- 
ances. Not all salesmen will be able 
to qualify for special compensation. 
All of them must qualify, however, 
for at least some regular compensation. 

The ideal sales compensation will 
include: 

(1) Salary 
(2) Commission 
(3) Bonus 


When I was younger and not so 
wise in the ways of salesmen and their 
employers, I was strong for this ideal 
system. It is still my favorite method 
of compensating salesmen for their 
efforts, because it is the fairest plan to 
both employer and worker. It is the 
best way to keep salesmen hustling 
and of maintaining their ambition. 

But, I have found that in most cases 
the system is impractical. In the first 
place, few concerns have a bookkeep- 
ing system that makes it possible to 
operate it. The sales records of 90% 
of all companies are woefully inade- 
quate. Only the simplest compensa- 


(7) 


(8) 


(9) 


SALES MANAGEMENT 


THE B OSS (himself) 


reads his copy 


At Home 


In the quiet and relaxation of the home living-room or study—amidst 
relaxation and with “some time to yourself,” is the ideal atmosphere 
in which a business publication receives full and complete and unin- 
terrupted attention. That’s where schemes are brewed. 

Sates MANAGEMENT offers its advertisers 
10,000 (latest figures from Cire. Dept.) 
Sales Executive circulation of which ap- 
proximately 27% is home-delivered and 
home-read (at $4.00 per year per subscrip- 
tion). 


27% HOME 


CIRCULATION 


EVERY ADVERTISING MAN 
WHO INVESTS MONEY 


IN 


BUSINESS PAPER 


ADVERTISING 


NEEDS THIS 
NEW BOOK 


OF INVALUABLE FACTS 


500 Pages of Factual 


Data on Business 


Papers and the markets 


they serve. 


80 TRADE, TECHNICAL 
AND PROFESSIONAL 
FIELDS 


Included as a part of each sub- 
scription to STANDARD Rate & 
Data Service at $30.00 yearly. 
Otherwise, $10.00 per copy. 


Published by 


STANDARD RATE 
& DATA SERVICE 


333 NORTH MICHIGAN AVENUE 


CHICAGO 
420 Lexington Ave. 318 W. Sth St. 
NEW YORK CITY LOS ANGELES 


155 Montgomery St., SAN FRANCISCO 


{370} 


tion system can be carried on under 
them. 

Even though the bookkeeping rec- 
ords may be fairly complete, a combin- 
ation salary, commission and bonus 
plan throws too much extra work into 
the accounting division. This is almost 
sure to win the antagonism of the ac- 
countants to the plan, which dooms it 
to failure. No system can succeed if it 
is constantly under the fire of some 
important department of the company. 

Another objection to a system whose 
operation is dependent on the book- 
keeping division’s efficiency, is that 
much accounting practice is on a yearly 
basis. Many of the records are always 
months behind, and therefore, useless 
for a compensation system that should 
always be kept up-to-date. 

Incidentally, there is a growing ten- 
dency to keep sales records in the sales 
department itself. Here they are avail- 
able for instant use and for the multi- 
tudinous purposes to which the mod- 
ern sales manager puts sales records. 
The sales accountant is a new profes- 
sion that is going to have a big influ- 
ence on marketing from now on. 

But the most potent objection to the 
salary-commission-bonus method of 
compensation comes from the salesmen 
themselves. Few of them like it. 

The trouble with it, from the men’s 
standpoint, is that the salary is seldom 
enough to live on, even at a minimum 
standard. The theory of the system is 
that the salary must be so low that no 
ambitious salesman will be content to 
work for it. In order to live decently, 
the salesman must also earn generous 
commissions and, if possible, a bonus. 


Salaries Maintain Morale 


The system might turn out all right, 
if commissions could be paid monthly. 
The bookkeeping methods of most 
companies, however, permit only quar- 
terly or semi-annual payments, In the 
meantime the salesmen can do a lot of 
starving. 

Even where the commissions ‘are 
paid monthly, the salesmen are gener- 
ally not satisfied with the arrangement. 
In most lines sales bunch in six 
months or less of the year. During the 
off-months the commissions are low, 
not enough to offset the salesmen’s 
small salaries. 

Most employers do not seem to ap- 
preciate that salesmen cannot do jus- 
tice to their jobs if they are worried 
about money. We find in our studies 
that most salesmen are worried about 
their personal finances to an extent 
that greatly handicaps them. A com- 
pensation system should, above every- 
thing else, clear up this situation. It 
should compensate the men so that any 


man worth keeping on the payroll is 
able to make a decent living for him- 
self and his family and be able to pay 
his bills once a month. 

We find that many concerns are 
careless about remitting expense 
money to their salesmen. Some do 
not even advance expenses, but reim- 
burse the men at the end of the month. 
This is a bad plan, as few men are 
able to finance their expenses. We 
often discover that salesmen are not 
able to get away from their base for 
several days at a time, for lack of 
traveling money. 

The salary system is the only plan 
that makes it possible for a salesman 
to take care of his obligations promptly. 
So, we have found that for the aver- 
age salesman there is no better way to 
stimulate him and to keep him happy 
with his job than to pay him a living 
salary—enough to maintain him even 
though he earns no further compensa- 
tion. 


Bonuses Invite Extra Effort 


Good salesmen, however, will not 
be content just to earn their salaries. 
They will want to make extra money, 
to be paid for exceptional perform- 
ance. The best way to give such 
awards is in the form of a bonus. The 
salary and bonus plan, even though it 
is not ideal in some respects, is in the 
iong run the most satisfactory way to 
pay salesmen. More and more organi- 
zations are adopting this plan. 

As a rule, bonuses are paid once a 
year, usually around the Christmas 
holidays. The most common method 
of figuring bonuses is on a fixed per- 
centage of sales exceeding quotas. 
There are, however, a hundred other 
methods of calculating bonuses. A 
method that is coming into wide vogue 
is to allot special payments to the sales- 
men, based on a purely arbitrary ap- 
praisement of their worth. The sales 
manager uses his judgment, awarding 
his men not only for their sales, but 
for their effort, their cooperation, loy- 
alty and for anything else out of the 
ordinary that they may have done dur- 
ing the year. 

Under the type of salary and bonus 
system, the salesmen get a salary 
which takes care of their regular liv- 
ing expenses. The bonus, coming in a 
lump sum and running up into the 
hundreds or even thousands of dollars, 
enables the salesman to pay life insur- 
ance premiums, to make mortgage pay- 
ments or to build up savings or invest- 
ment funds. 

Significantly, this is essentially the 
system used by many large organiza- 
tions to pay not only salesmen but 
their managers and executives. The 


SALES MANAGEMENT 


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F. W. Woolworth Co., for example, 
pays its store managers only enough to 
enable them to get by. They live off 
their drawing accounts. They make 
their real incomes from their share of 
the stores’ profits. 

This, as I have already stated, is the 
best system for the average salesman. 
But, it is not the best system for all 
salesmen. It is not necessary for a 
concern to have a uniform system of 
compensation, applying to all salesmen 
alike. In fact, there may be three or 
four ways of paying salesmen in effect 
in the same organization. As I have 
repeatedly tried to point out, a sound 
compensation plan has to be tailor- 
made. It must fit the salesman who 
is wearing it—be shaped to suit his pe- 
culiarities, temperament and problems. 

For instance, in almost every sales 
force, there will be found two or three 
men who prefer to be paid a straight 
commission. These men are individu- 
alists who like the excitement, the 
freedom and usually the greater re- 
wards of straight commission selling. 
Put them on a salary and they will 
shrink into mediocrity. The good 
compensation plan should be elastic 
enough to accommodate itself to the 
temperamental requirements and work- 
ing methods of all the worthwhile 
men on the sales force to which it is 
to be applied. 

To sum up, the regular compensa- 
tion part of the plan should be based 
on the needs of the business and on 
the requirements of the salesmen. For 
the average salesman, the salary and 
bonus system has been found best, but 
in most organizations there are some 
men who may prefer to be paid in 
other ways. If so, adapt the system to 
suit them. 


To Solve Special Problems 


Few companies make any attempt to 
have more than a regular compensa- 
tion system. If it is well devised, 
based on the needs of the salesmen 
and of the business, that is all the 
system the average company will re- 
quire. However, should an organiza- 
tion want to be really scientific in 
stimulating and regulating its sales 
representatives by a method of paying 
them, it should have a plan of special 
compensation. Such a plan can be 
aimed at a solution of the company’s 
marketing problems. 

For example, let us suppose that 
one of the serious problems of the 
business is its high selling expense. 
Any sort of enterprise or good pro- 
motion or well-directed effort should 
reduce a concern’s sales cost, but the 
major factor in reducing it will be the 
energy, intelligence and ability of the 


FEBRUARY 15, 1937 


salesmen. It is only right, therefore, 
that the salesmen should benefit from 
any lowering that they may effect in 
their own particular selling cost. 

Frequently I have seen a well 
rounded sales campaign reduce selling 
expense 10%. A reduction of up to 
20% is not uncommon. Where sales 
men are granted a participation in this 
saving, it usually runs from 5 to 25%. 
Ten per cent is enough to make a 
salesman work his head off. 

Other special payments can be 
made as awards for winning contests 
or drives or for having done some spe- 
cial jobs. For instance, if a company 
has not enough dealers in certain ter- 
ritories, Outright payments can be 
made, say $5 or $10, for each accept- 
able new dealer signed up. Grand 
prizes, say $100, can be paid in addi- 
tion to the salesman getting the larg- 
est number of new dealers in a given 
period. 


Sales Accountant Needed 


Similarly, rewards can be paid to 
salesmen getting customers to handle 
the full line, or getting them to buy 
more profitable items in the line, or in- 
ducing them to give the line better 
display in the store or windows, etc. 
A contest of this kind has secured 
hundreds of windows for a manufac- 
turer where previously he had been 
getting virtually none. When a con- 
test is on, salesmen will go to their 
customers, with whom they are on 
friendly terms, and say, “I have a 
chance to win $100 if you help me 
out.” In this way it is easy to get 
many dealers to cooperate. 

I would not advise a concern to go 
in for an elaborate program of special 
compensation unless it has a sales ac- 
countant. Otherwise it will get so 
mixed up trying to conduct these spe- 
cial drives that more harm than good 
will be accomplished. 

While it is the custom to pay sales- 
men in cash for special performances, 
usually on conclusion of the drive, a 
new method of handling special com- 
pensation is coming into vogue. In- 
stead of paying a salesman $5 for 
each new dealer he is given a $100 
credit against his quota. Instead of 
giving him $100 for winning a contest, 
he is credited $2,000 on his quota. 
This plan has proved to be unbeliev- 
ably stimulating. All salesmen are 
anxious to make their quotas, since 
they do not begin to earn a real in- 
come until they do. Therefore, any 
special work that they can do which 
will help them to attain their quotas 
will be done with enthusiastic gusto. 
This plan also demands a sales ac- 
countant to carry it out properly. 


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this sales increase — selling a 
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Due to unforeseen conditions, this 
man is seeking other connections. 
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Can bolster up its sales staff with 
this man. The age is 33—American— 
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Address your inquiry to 


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SALES MANAGEMENT 


420 Lexington Avenue, 
New York, N. Y. 


[371] 


“In the News 


E=—_-." 


FOR SAFE DRIVING 


NEW defroster fan to clear 7 
A mtomobile windshield of 1¢ an 


st is driven by @ 


sleet, steam and du 


froster 


om 
Fan-type W indshield de 


vacuum motor oper 
take manifold. Opera 
does not. therefore, 

The entire unit 
B AKELITE case. 
built by the Bish 
Company, May be in 


is in 


Publicity Like This Proves Sales Value of ‘BAKELITE’ 


TO OBTAIN effective editorial com- 
ment in established magazines and 
newspapers. commercial products 
must possess genuine news value 

and the more, the better. The 
frequency with which the word 
“BAKELITE” appears in general 
magazines indicates the added news 
value that manufactured products 
acquire when they are made from 
Bakelite Molded. They become 
“news” to editors, dealers and pro- 
spective customers, alike. 

This good-will and prestige value 
of the trade-name “BAKELITE” is a 
sales asset from which many manu- 
factured products have benefited. Tt 
is a plus-value added to the many 
otheradvantages of Bakelite Molded. 
BAKELITE 


BAKELITE CORPORATION OT 


@orviactured by Batelite Corporotion. Under the cepitel “8” is the 


MATERIAL 


THE 
[372] 


ated from the in- 
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drain the battery. 
al modern 


This new defroster, 
hop AS Babeock Mig. 


stalled on any cat. 


Scientific American 


CORPORATION, 247 


ANADA, 


The registered trade marks shown ob 


Among these are the adaptability 
of the material to the accurate re- 
production of almost any shape or 
form; its rich, lustrous color and 
finish; its strength and durability; its 
resistance to temperature changes. 
moisture, acids and oils; and the 
economies it usually effects in pro- 
duction and assembly. 

Bakelite Molded is available in 
black, brown, and a variety of at- 
tractive colors. To learn more about 
it and the possibilities that its use. 
may offer in improving the design, 
quality or performance of your own 
product, we invite you to write for 
a copy of our 48-page illustrated. 
informative booklet 26M.” Bakelite 
Molded”. 

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Windshield defroster fan with two-piece 
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Bakelite Molded. Bishop and Babcock 
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HW symbol 208 the infinite 
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A THOUSAND 


USES 


SALES MANAGEMENT 


@ Lighter Autocars: Autocar Co., Ardmore, Pa., enters the low-priced truck field with a 

group of “sturdy, small versions of the heavy-duty line which has preceded them.” 
Weighing 13,000 and 16,000 pounds, the latest members of the family are priced at $1,095 and 
$1,480. Autocar thus presents a complete range in sizes and styles. 


@ Fast Flip-Flop: At right is the elec- 

tric toaster designed by Robert 
Heller for the A. C. Gilbert Co. Chrome 
plated, with a black enamel base, door 


handles of Bakelite, it retails for around 

$3. The smooth curved surface of the 

doors are designed not only for appear- 

ance, but the gently sloping sides facili- 
tate the toast’s flip-flop. 


HM Oil Makes Air: Wilbur Henry Adams, 
DESIGNING Cleveland, designed this new oil 


burning air conditioning furnace for 


Perfection Stove Co. Finish is in red 


and black lacquer and trimmings are 


stainless steel. The dark panel shown on 
‘ O the front is a door for accessibility to 


e 4 the controls. Four different sizes are in 


the line. 


WM Karpark: This nickel-an-hour park- 
SHI | ing meter becomes the 60,001st item 


in Graybar Electric Co.’s diverse line. 


Manufactured by Karpark Corp., New 
York, it will be sold through Graybar 
a distributors in 80 cities. Some 15,000 


meters, which display a red flag when 
the hour is up, are reducing parking con- 
gestion and bringing in revenue to busi- 
ness sections of 20 communities, among 
them Kansas City, Houston, Dallas, and 
Oklahoma City. Monthly receipts have 
been as high as $243. Raymond Loewy de- 
signed the model illustrated. Advertising 
will appear in city manager’s publications, 
and probably in newspapers. Newell- 


Emmett Co. is the agency. 


@ Featured: Leonard Refrigerator Co. plays the spotlight on a designing detail, emphasizing 
its “Master Dial” on 24-sheet posters for current showing. Agency is Geyer, Cornell & 
Newell, Inc., Detroit. Posters are lithographed by Forbes Lithograph Co., Boston. 


MH Deadilatch: (Above left) Yale & Towne Mfg. Co. introduces a door lock that fits 


snugly to the door without sticking out like a sore thumb. Screws securing it 


are invisible. Of course it fits horizontally into the door, and not vertically as shown, 
A self-lubricating latch bolt assures extreme ease in closing. Because “Nightlatch” is 
a misnomer, since all locks serve day and night, the firm prefers “Deadlatch” and 


“Springlatch.” Wearing of the Green: 


(Above, right) International Radio’s Kadette 


model is housed in ivory Plaskon, set off by the green dial, screen grid, the top, grill, 


and knobs. 


It’s an eye-catcher. 


DESIGNING TO SELL 


@ Spring’s Around the Corner: 

And stores will soon be show- 
ing such gay table cloths as these 
at left. The two top ones have as 
inspiration the forthcoming British 
Coronation. Designed by mar- 
guerita Mergentime and offered by 
Edmund Dewan, they are in a new 
rayon and cotton fabric. The up- 
per, called “British Boquet,” has 
the rose, shamrock, and thistle in 
the ribbands. Next, reading down- 
ward, is “Coronation,” with lion 
and unicorn, coat of arms, etc. 
The print is in white with a choice 
of Dubonnet, red, green, or brown. 
Last is a nautical print in bold 
colors practically guaranteed to 
make a mess of Spring greens 
and a fish fry taste better. Photo- 
graphs are courtesy of Dry Goods 

Economist. 


HM Containers, Not Candy: AIl- 

though they resemble choco- 
lates, the small containers at the 
bottom of the page are really Plas- 
kon rouge boxes. Elmo, cosmeti- 
cian, decided on them because they 
won't scratch or mar in the pocket- 
book, and if dropped—which hap- 
pens about every day to most 
women’s reticules—the rouge can 
come to no harm in the almost un- 
breakable containers. This is a 
talking point worthy of emphasis 
at toilet goods counters. Closure 
division of Armstrong Cork Prod- 

ucts was the molder. 


He Vend-A-Pak: At bottom, second 

from left, is the self-vending coun- 
ter display for Androck screw eyes, 
screw hooks, and other bright wire 
products of the Washburn Co., of 
Worcester, Mass., and Rockford, IIl. 
Formerly such goods were sold in 
bulk without brands and without the 
benefit of a manufacturer’s responsi- 
bility behind them. The packages 
now can profit from advertising and 

the Washburn prestige. 


Wo Quik-Lox: Third from left, below, 


one of a new line of five-gallon@ 


pails introduced by National Steel 
Barrel Co., Cleveland. Opening and 
closing is quick and with no skinned 
knuckles because of the Quik-Lox 
rings on the top. Shipper of solid, 
semi-solid, and liquid materials found 
the rings highly advantageous on the 
company’s 55-gallon drums, hence the 
line of smaller pails appears to fill a 
ready-made demand. 


MH Penfiller: Below, right, is the 

Terry Penfiller Co.’s device that 
fills fountain pens without the pen’s 
lever being used. Merely pushing 
down into the well gives the pen a 
snootful. No ink can spill, or get on 
the fingers, and the Penfiller is sealed 
against dirt and evaporation by a 
vacuum cap. It comes in a variety of 
colors. The Janesville, Wis., company 
declares it is also equally convenient 

for ordinary dip pens. 


4 


MEN 


In Your Sales Organization 


With only a product and a prayer to guide them, 
salesmen cannot survive competition today—no 
matter how’ good the product, nor how fervent the 
prayer. Untrained salesmen become the forgot- 
ten men of selling. 


The experience of thousands of marketers is 
proving every day that sound slide films train 
salesmen more effectively and more quickly than 
any other medium. 


SOUND PICTURES CORPORATION created 
the FIRST complete sales training course in 
Sound Slide Films, and has been consistently first 
in improving this medium. An increasing list of 
clients can testify that a SOUND PICTURES 
sales training course, hand tailored to individual 
needs, is an imperative part of every sales pro- 
gram. 


SOUND PICTURES CORPORATION 


3091 MAYFIELD ROAD CLEVELAND, OHIO 


Creators and Producers of Motion Pictures and Sound Slide Films that Sell 


a ot er ee oe. | 


FEBRUARY 15, 1937 [375] 


IV aguepi AN 


) \GENCIES 


Aylesworth Now Newspaper Man... 


Aylesworth to Scripps-Howard 


M. H. Aylesworth, for many years head 
of National Broadcasting Co., and more 
recently chairman of the board of Radio- 
Keith-Orpheum, joins Scripps-Howard news- 
papers this month in an editorial executive 
capacity. Rumor mongers believe it’s more 
than a coincidence that Scripps-Howard 
should, within a 12 months’ period, take 
unto themselves a few radio stations and 
a man who has so ably demonstrated his 
ability to organize and direct a radio net- 
work system. 


New Publications 

Last week came the first issue of the 
Financial Observer, a new type of finan- 
cial magazine in two sections. The first 
section presents a unified review of sta- 
tistical records, forecasts, news dispatches 
and reports. The second section is de- 
voted to features, designed to set forth a 
vivid record of American business. Ralph 
West Robey will have charge of the first 
section, and Reginald Wright Kauffman 
will be editor-in-chief of features. Eugene 
MacLean is managing director, and Wins- 
low Abbey, business manager. 

Radio now has its daily paper. The 
publisher of Film Daily, now in its 19th 
year, commenced on February 9th to pub- 
lish the Radio Daily as a nationally cir- 
culated trade newspaper. The initial 
press run was 10,000. 

Bachelor, a new magazine for “educated 
bachelors and smart men about town,” is 
due to appear on the stands late in the 
month, under the editorship of Fanchon 
Devoe and printed by Cuneo, 10” x 13” 
size, coated stock. Other members of the 
staff include Franklin Hughes, art director; 
Lorenz Moré, travel editor; Jerome Zerbe, 
photographic editor, and Robert L. Cris- 
well, business manager. 


Plans Across the Sea 


The March issue of F. W. Dodge’s 
Architectural Record will be edited by 
H. C. Hastings, editor of the Architectural 
Review, London, and the corresponding 
issue of the English magazine is edited by 
A. Lawrence Kocher, managing editor of 
the Record. Both magazines were anxious 
to bring to the professional readers on 
both sides of the Atlantic knowledge on 
what the architectural profession is doing 
on planning and designing their buildings 
and what the industries are producing in 
the way of equipment. The idea came to 
Mr. Kocher several years ago when he 
was offered an exchange professorship in 
the University of Liverpool. He asked the 
question, “if universities can exchange pro- 
fessors, why can’t we swap editors?” 


Dr. Weld’s Trade Indices 


Dr. L. D. H. Weld, director of research 
of McCann-Erickson, Inc., is breaking the 
country down monthly into 29 regions 


[376] 


Pictorial Review Becomes Biggest 
|= |= Magazine ... Fortnight’s Ad News 


which are natural trading areas, and chart- 
ing the ups and downs of business in these 
territories for Dun & Bradstreet’s Review. 
Four factors are used in the tabulation: 
Bank debits, department store sales, new 
car sales and life insurance sales. “It 
will now be possible to obtain information 
about business conditions in particular 
sections of the country to help explain 
why sales have been lagging or going 
ahead at an accelerated pace as compared 
with sales in other regions,” Dr. Weld 
said. “These indices should be especially 
instrumental in judging the effectiveness 
of sales efforts in various parts of the 
country. They will serve as a basis for 
adjusting sales quotas, and they will also 
help to determine when the time is ripe 
for special sales or advertising drives.” 


Radio Markets 
Charles R. Tighe, publisher of Radio 


Art, has started to publish in January, 
April, July and October issues of his month- 
ly magazine standardized marketing infor- 
mation about radio stations. The mats and 
accompanying printed data are based on 
the theory that every radio station covers 
a certain market and that this market is 
not necessarily confined by the metropoli- 
tan district in which the station is located 


or the retail trading area surrounding that 
metropolitan district. No two stations, ac- 
cording to Mr. Tighe, have the same cov- 
erage, and while two or three stations may 
be located in the same city their coverage 
and market areas are entirely different. 
The published data list the counties in 
both primary and secondary areas of the 
different stations, and show sources from 
which coverage was arrived at—from a 
mail count, field survey or any other means. 


Drama Behind Scenes 


A recent blizzard, instead of stopping 
broadcasts from the Hearst radio station 
KTSA, San Antonio, merely sharpened 
the ingenuity of the Columbia affiliate. 
With all wire services paralyzed, the 
KTSA engineering department devised an 
elaborate antenna system to rebroadcast 
the network features using the Columbia 
outlet KMOX, St. Louis. The emergency 
was met with such dispatch that listeners 
were not aware of any difficulties. 


Media News 


“Merchants in Emotion” is the copy 
theme of a special campaign just launched 
by Fawcett Publications in 42 newspapers 
in 40 cities throughout the country. The 
campaign, which is the largest and most 
comprehensive newspaper schedule ever 
released by Fawcett, is aimed toward men 
and women of the mass markets, and is 
being tied in with advertising in trade 
papers. 

A full page in the February 13 issue 
of Liberty announces a $1,000 reward for 
information leading to the apprehension 
of the Mattson murderer, posted by Ber- 
narr Macfadden. A similar reward in 
1934 brought about the capturer of Richard 
T. Galatas of the renowned Dillinger gang. 

Rodney E. Boone, general manager of 
Hearst International Advertising Service, 


ATTENTION! CALLING ALL LEGIONNAIRES INTO ACTION aT once, “=m LEADER 


THE ADVERTISERS IN OUR AMERICAN LEGION MONTHLY DESERVE 


FRIGIDAIRE 


Seagram's 


THE ENTHUSIASTIC SUPPORT OF EVERY LEGIONNAIRE. LET'S > a oe 
STAND BY THE FOLKS THAT STAND BY US - WHENEVER POSSIBLE. Ne 
NOTE THE ADVERTISEMENTS IN THE MONTHLY - TAKE A LOOK AT Schenlyy; 


THE WELL-KNOWN TRADE MARKS AND REMEMBER THEM WHEN YOU BUY. Ha LE «= 
LET"S PULL TOGETHER FOR A GREATER, MORE POWERFUL LEGION. 


THANKS FOR YOUR COOPERATION. 


v ¥ 
JAMES F. BARTON, GENERAL MANAGER wr Thbity Rr Erg 
THE AMERICAN LEGION MONTHLY ay 
>) 


_Nasy gg ree [py Oy 


He =~ MALE 
WZ 0nG¢ 


ase 


Tine Ge 


Z| Sekkase oe gp 


The American Legion Monthly is aggressively and consistently merchandising itself 
to importance throughout the country in a series of broadsides sent to 4,000 selected 
Posts, which have expressed a willingness to cooperate with the magazine. 

Herbert R. Schaeffer, advertising director, tells his advertisers, “Hundreds of thou- 
sands of buyers will be personally told about your products in addition to reading 
about them in the advertising pages of the American Legion Monthly. Then still 
further, because these messages will be conspicuously posted in 4,000 meeting places 
of Legionnaires, your name will be kept constantly before the eyes of active buyers.” 


SALES MANAGEMENT 


The Small Town 
NEWS WEEKLY 


The news weeklies have 
found their place in the sun 
because they meet a def- 
inite human need. 


The idea back of this 
type of publication is not 
especially new. GRIT has 
been reporting the news of 
the week for more than 50 
years — as one of its 
regular features. 


GRIT'S review of the 
week's newsworthy events 
is complete, but concise. 


And because 83 per cent 
of GRIT'S circulation is in 
towns of less than 10,000 
population, every para- 
graph is written specific- 
ally for Small Town 
families. 


Use “the Small Town 
news weekly" to influence 
buying of Small Town 
families. 


ca arena TT 
Net Income of $1,000 a Day AL- RELIEF SPEEDED "for Ceremony Jan. 20 


HN STD CS ey yr ADE 10 EM 


er Kid 
Check on here ound Unde Only Military ~ "er- 
ae RAL | oneal at STILL HLL IS At . Aw Lint 9 9% aiety, 


1 10 = ng 


NE COURST Sol raat WH: 


Aid of Courts and vaawnn” 


M2 ron hon 3 ile va nse many ma Meat 
@Ss an B us S Aat —_— of Gt —— 
$200 in Towns ol Na NUN PEAS 
Orchard a. en _— we o Adve 
Wash., nn -— THE GANT INT BPP <A or 2 o1he ex Fats 
HOLD NECRO AS KILLER sianer asa Bmnwses ten Museo 


ents for Pensions 


ot LF- ws 
Officers Say Porter Murder 


Mrs. Mary Harriet Case Sartorial Streamlining Alters 
conression 1s sicxe Typical Congressman Picture 


congressman. No lo nger do 

— — = ye Af Trim Suits and Pastel Shirts Now ay rtly gentlemen in trailing Prince 

lerce Battle — Husban 1scov Albert, brocaded vest, and nee A col- 
ers Body — Funeral Services Replace Prince Alberts lar typify the men of Capitol Hill. 

Held in Pennsylvania of Yestery ear The ee Albert being replaced 

by trim b s; the b ded 

S american pon nd girls and the vects by soft shirts pastel shades, 

With t est of a 33-year -old ¢ — can people —— will have and the number of government solons 

®red man, * Nev ew York City polic stoa neir mental picture a Un ited who have taken to wearing spats is 


. how GRIT handles the week's news 


DID YOU KNOW— 


that the towns of less than 10,000 
population ring up one-third of the 
nation's total retail sales? 


—WU. S. Census Bureau. 


READ BY 
MORE THAN 500,000 
SMALL TOWN FAMILIES 
EVERY WEEK 


am { 


“~~ Rie SS 
7 — 
C eS 


C5i LAS 3 66 LY am 
Fy = Greatest Weekly _Newspaper {> = 


£2 ic 
an AY 
Nose inn: 
I> 


cag or 


SERRSTEREREREE Sites Se Earvessyr yee <i bp 


Bie 2FFEATS ks 


Magazine Type Coverage — Sells Goods With Newspaper Speed 


FEBRUARY 15, 1937 


[377] 


THE WORLD 
WITH A FENCE 
AROUND, IT ce 


™ 


SERVICE 


WOULU BE WILLING AT 


HOTEL LENNOX 
IN SAINT LOUIS 


We expect you, our guest, to have your 
whims. To want to be humored. To want 
to be catered to. We expect you to crave 
more than the comforts of home in this, 
your home in St. Louis. Every Lennox 
employee is brought up with a con- 
sciousness of this hotel’s accent on 
service. You'll sense this in your every 
contact here. 

Fine Food is another reflection 

of the will to serve better. 


RATES 


50% of all rooms rent for $3.50 or 
less, single; $5.00 or less, double. 


Tkennox 


a 9TH & WASHINGTON, ST. LOUIS 


Within 1 Block of Hotel Mayfair — under same management 


[378] 


has announced the promotion of John D. 
Burke, formerly newspaper automotive ad- 
vertising manager, to the position of man- 
ager of the Pacific Coast group of the 
Detroit office. L. C. (Slim) Barnard will 
succeed Mr. Burke as automotive manager 
in the Los Angeles office. 

Ralf Coykendall, business manager of 
Stage, announces the following personnel 
of the advertising department of that 
magazine, effective March 1: Kenneth 
Chambers, advertising manager; H. J. Don- 
ohue, national advertising manager; Sarah 
J. Brown, local advertising manager, and 
A. Starke Dempewolff, western advertising 
manager. 

Robert C. Brown has been appointed 
assistant publisher of the New York Eve- 
ning Journal, Walter J. Merrill will be ad- 
vertising director, and Arthur Darmstader 
will be advertising manager. George J. 
Auer and E. M. Alexander have resigned 
from the Journal, 

Rudolph August, formerly with La- 
Salle Extension University, and previously 
with Reincke-Ellis-Younggreen & Finn, 
Electrical Dealer and National Real Estate 
Journal, has been appointed eastern editor 
of Advertising Age. Irwin Robinson, for- 
merly editor and general manager of 
Graphic Arts Buyer, is now associate editor 
of Advertising Age. 

Peter Zanphir has resigned from the 
promotion department of True Story to be- 
come a member of the promotion staff of 
The Redbook. 


Agency News 


A new agency, J. M. Korn & Co., Inc., 
has been formed at 1528 Walnut Street, 
Philadelphia, with the following | staff 
members: J. M. Korn, president; James B. 
Burns, John L. Devine, and Irwin W. Sol- 
omon . . . The following have been 
elected vice-presidents of J. Walter Thomp- 
son Co.: Daniel J. Danker, Jr., A. Thayer 
Jaccaci, William C. McKeehan, Jr., Clem- 
ent H. Watson, and Elwood Whitney .. . 
Thomas F. McManus, formerly art di- 
rector for Ruthrauff & Ryan and also 
Blackett-Sample-Hummert, has joined the 
creative staff of Brooke, Smith & French, 
Inc. . . . Dwight Reynolds, with 
Sidener, Van Riper & Keeling for ten years, 
has been appointed a vice-president. 

H. B. Groseth, for the last five years 
advertising manager of George A. Hormel 
& Co., has resigned to join Knox Reeves 
Advertising, Inc. . . . Carl G. Gaubert, 
account executive with Blackman Adver- 
tising, has joined the Gray Advertising 
Agency to supervise food, drug and cos- 
metic accounts . . . Arthur R. Griswold 
has merged with and become vice-president 
of Robert St. Clair Co., Inc. . . . William 
J. Williamson, Jr., with N. W. Ayer & 
Son, Inc., for 13 years, has been trans- 
ferred from that company’s Philadelphia 
office to the Boston office . . . L. C. Mac- 
Glashan, formerly with Charles Daniel Fry 
Co., has joined the Chicago office of Fletch- 
er & Ellis, Inc. 


Account Changes 


Universal Pictures Co., Inc., to J. 
Walter Thompson Co., and Frigidaire 
Corp. to the Buenos Aires office of the 
same company ... U. S. Finishing Co. 
and L. E. Waterman Co. to J. M. Mathes, 
Inc. . . . American Spice Trade Associa- 
tion to Charles W. Hoyt Co., Inc... . 
California Redwood Association to Erwin, 
Wasey & Co., San Francisco office. . . . 
Yamanka & Co., Inc., to U. S. Advertising 
Corp. . . . National Cigar Co. to Metro- 


politan Advertising Co. Revillon 
Freres to The deGarmo Corp. . . . Proctor 
& Schwartz, Inc., to B. W. Stelle, Inc. 
. . . Indian Trailer Corp. to Ford, Browne 
& Mathews . . . Chandler Oil Cloth Co. 
to The Redmond Co. 


Henry Legler, for the last nine years with 
the J. Walter Thompson Company, has 
resigned to become a partner, director 
and vice-president of Cecil, Warwick & 
Cecil, and within the next 60 days the 
firm name will be changed to Cecil, War- 
wick & Legler. The present company 
was formed nine years ago and the ante- 
cedent company dates back to 1916 when 
the present advertising company was 
formed in Richmond. 


Blackman Now Compton 


The firm of Blackman Advertising, Inc., 
founded by Oscar H. Blackman in 1907, 
was changed on February 8 to Compton 
Advertising, Inc. No changes are affected 
in accounts or in personnel other than the 
withdrawal from the firm of Mr. Marion 
Harper. Richard J. Compton, Jr., president 
of the company for the past three of his 
20 years’ active service with it, continues as 
president of the new company. 


Mutual Network: $2,000,000 


President W. E. Macfarlane of the Mu- 
tual Broadcasting System said at Chicago 
early this month that the network had a 
gross billing of “slightly under $2,000,000” 
for its first year just closed. Speaking at 
the first general meeting of the network's 
members and affiliated stations, he added: 
“With our expansion to a coast-to-coast 
network with the addition of the western 
stations and the Don Lee Broadcasting Sys- 
tem in California, December 29, the Mutual 
Broadcasting System is now operating on an 
equal basis with the other two major broad- 
casting systems of the country.” 


Hearst’s Atlanta Celebration 


February 5 marked the 25th anniversary 
of the Atlanta Georgian and American as 2 
Hearst newspaper. Since 1910 the Atlanta 
territory has undergone tremendous expan- 
sion and the anniversary celebration was 
as much a civic event as a publishers’ holi- 
day. The celebration was attended not only 
by Hearst executives from all over the 


SALES MANAGEMENT 


country but by scores of advertising agency 
executives and manufacturers from the East, 
Middlewest and South. 


News Week Merges with Today 


Vincent Astor announced last week the 
merger of News Week, the Weekly Maga- 
zine, and Today, the Magazine of Opinion 
and Comment. The new publication will 
continue the News Week format and will 
contain a page by Raymond Moley of edi- 
torial comment on events similar to his 
page in Today. The News Week name will 
be maintained and a circulation guarantee 
of 275,000 is announced for 1937. The 
McCall Corp. will continue to print the 
magazine. Officers of the new corporation 
are: Vincent Astor, president; S. Winston 
Childs, Jr., vice-president; F. DuSossoit 
Duke, vice-president; Raymond Moley, edi- 
tor; S. T. Williamson, executive editor; 
Frank K. White, treasurer; Charles F. 
Bomer, assistant treasurer. 


New Magazine in News Field 


Another new magazine—a monthly—will 
be offered to the public in the Spring, ac- 
cording to Fillmore Hyde, president of the 
Enrey Publishing Co., which has been 
formed at 45 West 45th Street, New York 
City. Included on the board of the new 
company are William V. Griffin, vice-chair- 
man of the board of Time, Inc., and O. D. 
Keep, president of Fact and of Cue, and 
formerly promotion manager of Time. 

Mr. Hyde, publisher and editor of the 
new magazine, was formerly literary editor 
of the New Yorker and later executive edi- 
tor of News-Week, and executive editor of 
Today. The magazine will have a news- 
stand circulation. The advertising set-up 
has not been announced as yet. 


Pictorial Absorbs Delineator 


Beginning probably with the May issues, 
Pictorial Review and Delineator, two of the 
oldest and most widely circulated women’s 
magazines, will be combined as Pictorial 
Review & Delineator, under Pictorial Re- 
view' control. The combined publication 
will have a circulation of more than 3,000,- 
000—larger than the circulation of any 
other general or woman’s magazine. 

Pictorial Review, established in 1899, 
was acquired by William Randolph Hearst 
in September, 1934. Richard E. Berlin, 
president of PR, is expected to continue 
as head of the combined publications, and 
Herbert R. Mayes, editor, and Robert P. 
Davidson, vice-president and advertising di- 
rector of PR, will remain in those capaci- 
ties. Pictorial Review's “policies” will pre- 
dominate, but some of Delineator’s staff 
will be retained. Delineator, founded in 
1868, is published by the Butterick Co. 


Crown Rayon “Shops” 


in 60 Stores Help 
Viscose Sell Quality 


(Continued from page 303) 

A manual has been prepared to help 
them and the sales people under them. 
In this manual features of the fabric 
testing and the thoroughness of the 
tests are emphasized. Swatches are in- 
cluded, showing types of fabrics which 


FEBRUARY 15, 1937 


can be sold as washable and types 
which should be dry cleaned. 
Photographs of the actual perform- 
ance of several of the tests are repro- 
duced in the manual. Store people are 
urged to use them in their selling. 


There are still some who are preju- 
diced against rayon. To a customer 
who discovers a “beautiful silk print,” 
only to learn that it is rayon, the clerk 
is instructed to say: 

“But Madam, this is not just an or- 
dinary rayon. This is one of the 
NEW Rayons of Fashion, a Crown 
Tested Rayon. Before this fabric 
came into the store it was checked, 
tested and approved by an impartial 
testing laboratory for every quality 
that you want to find in a fabric on 
which you are going to give your time 
and labor and money in making a 
dress.” 

Qualities of the fabric are then 
cited—its “‘natural firm texture”; the 
fact that it needs no “artificial weight- 
ing,’ which would impair its strength 
and wearability. Seaming qualities 
and resistance to fraying are empha- 
sized. 

The customer, probably being fash- 
ion-minded, is told, with proofs of 
advertisements, that Crown Tested 
Rayon Fabrics are advertised in Vogue, 
Harper's Bazaar, the New Yorker and 
the New York Times, in ready-to- 
wear, and in McCall’s, Butterick and 
Vogue Pattern Books in yard goods. 

“The finest Fifth Avenue stores and 
specialty shops, like Bergdorf-Good- 
man, have advertised Crown Tested 
Rayon dresses, because they know that 
they are wearable as well as fashion- 
right.” 

The stores have found, Mr. Spooner 
concluded, that although the special 
sections don’t boost prices they make 
it easier to sell, say, 59-cent instead 
of 39-cent yard goods. The average 
sales check is larger. The customer, 
convinced of quality, stays sold. 

Incidentally, a new phase of the 
separate-section development has just 
been undertaken by Arnold Constable 
& Co., New York, with the opening 
of a special Crown Tested Quality 
dress section in the 11 to 17 Junior 
miss division. It features dresses 
from $10.75 to $22.95, and has 
proved so successful that, Mr. Spooner 
expected, other stores would follow 
this example. 

Surely, Fifth Avenue, being what 
it is, and a recent survey of Fifth 
Avenue stores having shown that 
about 85% of all the “important fash- 
ions” promoted were created of rayon, 
this new textile has proved itself. 
Consistent emphasis on tested quality 


WHEN ALL ARE 


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[379} 


Bulletins on the Food and 
Drug Legislation Fight 


At the moment Senator Copeland’s measure—now known 


as the Chapman Food and Drug Act—seems to have the 


greatest likelihood of passage. 


By SaLes MANAGEMENT’s WASHINGTON CORRESPONDENT 


ONGRESS careened into the 
lush bounty of “recovery” liba- 
tions for another “‘last time.’ 
The President's ‘final relief 

appropriations” are becoming as nu- 
merous as Bernhardt’s farewell tours, 
and equally as well staged. 

But with the first deficiency bill of 
the 75th Congress out of the way, Con 
gress can settle down to its legislative 
life with the uncomfortable assurance 
that another deficiency bill is likely at 
any time to pop up, goblin-like, with 
out notice, and ruftle the unhappy calm 
of its hectic pondering. 

Some of this pond: ring will be con- 
troversial. And into this category falls 
food and drug legislation. 


The history of the attempts to push 
through the Congress a bill for the 
better control of foods, drugs, and cos- 
metics in their manufacture, advertis- 
ing, and marketing is well known. 
The present bills are, then, the out- 
growth of legislative bickering, politi- 
cal jealousy and competition. 

First: The House Bill, H.R.300. 
Last Congress the subcommittee of the 
House Interstate and Foreign Com- 
merce Committee held extensive hear- 
ings which the chairman of that sub- 
committee, Virgil Chapman, of Ken- 
tucky, has termed ‘‘the finest and most 
revealing hearings on food and drug 
legislation since old Doctor Wiley 
started the fight in 1906." The Senate 


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side of Congress might doubt this 
statement. But regardless of that, 
hearings were held on food and drugs, 
and a bill reported to the full Com- 
mittee which placed the advertising 
provisions of the measure under the 
Department of Agriculture in the Food 
and Drug Administration. The full 
Committee disagreed with this idea, 
and altered the bill so that advertising 
would be controlled by the Federal 
Trade Commission. 

This was in line with the Federal 
Trade Commission amendments which 
the then Chairman of the Interstate 
and Foreign Commerce Committee 
favored, enlarging the scope of the 
Commission. 

But nothing happened to the bill 
after that, except that in a conference 
between the House and Senate Com- 
mittee members to consider the bill 
they got hung up on this same adver- 
tising, and so the bill was shelved for 
the remainder of the session. 

Nothing happened to the bill as ap- 
proved by the full Committee on Inter- 
state and Foreign Commerce, except 
that it was introduced this year by 
Representative Chapman and bears the 
number H.R.300. 


8.5’s Heetie Career 


It is this bill which the Interstate 
and Foreign Commerce Committee of 
the House will act on this year. It is 
this bill which will have a subcom- 
mittee appointed for its consideration 
in another few days, which will be re 
ported by the full Committee, probably 
without hearings, and certainly with- 
out extensive hearings, and which wil 
be passed by the House. 

And it is this bill which will be held 
up in conference. 

For Second: The Senate Bill, S.5 
For three and a half years, Dr. Roya! 
S. Copeland, senior Senator from New 
York, has been pushing the food and 
drug fight in the Senate and in the 
Congress and in the Government. A 
couple of years ago Rexford Guy Tug- 
well, before that Administration satel- 
lite had turned into a molasses money- 
changer and while he was being ac- 
cused of Stalinic cleavage, had a food 
and drug measure sent up to the Con- 
gress which killed the chances of the 
Copeland proposal. Later on, Cope 
land fell on even more evil ways in 
the eyes of the Administration unti! 
the only thing that he and the Presi 
dent had in common was that they 
were both titular Democrats from the 
State of New York. That killed the 
Copeland Bill in the House, for the 
amiable Doctor had maneuvered mas- 
terfully to have his bill pass the Senate 
And it was this same Copeland Bill o1 


SALES MANAGEMENT 


’ 


’ 


which the House Interstate and For- 
eign Commerce Committee held its 
last year’s hearings, and over which the 
House and Senate deadlocked. For 
the principal reason, not of advertis- 
ing at all, in spite of its ostensibility, 
but because the genial Doctor was not 
an Administration adherent. 

And so the Senate has S.5 again. 
And the Senate too is determined to 
report the bill. But this bill provides 
that advertising, as an extension of the 
definition for labeling, shall be under 
the supervision of the Food and Drug 
Administration, retaining to the Fed- 
eral Trade Commission control over 
only that advertising which is a breach 
of fair trade. 

There are other points of difference. 
The Chapman House Bill provides that 
a food, drug, or cosmetic is misbranded 
unless it bears ‘‘a label containing the 
mame and place of business of the 
manufacturer and of the packer, seller, 
or distributor.” The Copeland meas- 
ure provides for the name of only one, 
not two, being on the label. 

The Chapman Bill also provides for 
grade labeling, while the Copeland 
measure conforms to the McNary- 
Mapes Standards System. 


Enter: Senator Wheeler’s Bill 


A subcommittee has been appointed 
within the Senate Committee on Com- 
merce to consider the measure. Senator 
Copeland, chairman of the full Com- 
merce Committee, is also chairman of 
the subcommittee. Other members are 
Democratic Senators Bailey, Caraway, 
and Clark; and Republican Senators 
McNary, Vandenberg, and Gibson. 

Already this subcommittee, hoping 
to escape the rigors of extensive—and 
also expensive—hearings, has con- 
ferred with Mr. Ole Salthe, the tech- 
nical adviser who assisted Senator 
Copeland in drawing up the bill. Al- 
ready they have gone over the bill 
sentence by sentence, changed it a bit, 
altered and strengthened the language, 
and girded their loins for pushing the 
measure through the Senate at the 
earliest possible moment. Which, inci- 
dentally will not be too soon, and not 
be soon enough. 

For at this point enters another fac- 
tor: A bill jointly introduced by 
Senator Wheeler and Representative 
Lea. Mr. Lea is the chairman of the 
House Interstate and Foreign Com- 
merce Committee which will take up 
not only this food and drug bill, but 
also the joint Wheeler-Lea proposal, 
the Federal Trade Commission Amend- 
ments. 

In this case the race is to the swift. 
Senator Copeland will endeavor to 
have S.5 pass the Senate before the 


FEBRUARY 15, 


1937 


Wheeler Bill comes up. And there is 
a slight possibility that it may. But in 
the House, Congressman Lea, as chair- 
man of the committee, has already indi- 
cated that he will take up his own 
Federal Trade Bill before considering 
the Chapman food and drug measure. 

This means then that the broaden- 
ing of the powers of the Federal Trade 
Commission in prospect—the bill, inci- 
dentally, would permit the Commission 
to examine the books of corporations 
—the chances are nil for the advertis- 
ing provisions of the food and drug 
measure going to the Food and Drug 
Administration set up by the bill, re- 
gardless of how perfect a straddle 
Senator Copeland and his committee 
might devise. 


Senate for Copeland Measure 


There is but one chance that this 
line of reasoning might be wrong. 
That is in the conference on the food 
and drug bill after it has passed both 
Houses. For the House will pass the 
Chapman Bill and the Senate the Cope- 
land measure, and a conference be- 
comes not only a necessity but also a 
battleground for the measure, and it is 
in conference that the big fight will be 
waged. Should the Senate bill for 
food and drugs pass the upper House 
before the Wheeler Bill for the Fed- 
eral Trade Commission, there is every 
likelihood that it will contain the ad- 
vertising provisions as Dr. Copeland 
and his advisers drew them up. The 
House bill, of course, and regardless 
of whether the food and drug or the 
Federal Trade Bill passes first, will 
place advertising in the hands of the 
Commission. 

The conferees will argue this out. 
But rather than have the bill die again, 
Senator Copeland will accede to the 
House request. His main interest is 
in legislation for food and drugs, not 
in having his name attached to a bill. 
He may be expected therefore to con- 
cur in the House measure. In which 
event the Administration would win a 
titular victory, for the act would be 
known as the Chapman Food and Drug 
Act. But in which event Copeland 
would also be a victor. 

This dissertation proves only one 
thing, and that has been said on these 
pages before: That food and drug 
legislation appears to be more and 
more of a certainty of the 75th Con- 
gress; that even when he loses Senator 
Copeland will be pleased; that the 
measure will bear Chapman’s name; 
and that in bearing that name it will 
find Administration approval; and the 
measure that the Administration will 
approve will give the Federal Trade 
Commission control over advertising. 


that.. 


Ses ANTONIO is the commercial 
and financial center of the vast ter- 
ritory known as South Texas, which 
is inhabited by more than two mil- 
lion persons with a spendable in- 
come from agricultural and indus- 
trial resources approaching a 
billion dollars annually. 

South Texas’ amazing growth 
and prosperity is due to agricul- 
tural crops, citrus fruits and live 
stock of every nature and to the 
intense development of oil and 
gas fields. 

This is an up-and-coming market 
you cannot afford to overlook, and 
is only one of the ten great markets 
Hearst Radio offers you. 

Remember, when you deal with 
Hearst Radio, you deal with one 
organization from solicitation to 
final broadcast. 


HEARST 
RADIO 


NEW YORK 
CHICAGO 
DALLAS 
LOS ANGELES 
SAN FRANCISCO 


Representing 
WBAL . BALTIMORE WCAE . PITTSBURGH 
KTSA .SAN ANTONIO KOMAOKLAHOMACITY 


KYA SAN FRANCISCO KNOW. . . AUSTIN 
KEHE LOSANGELES WISN . MILWAUKEE 
WINS . NEWYORK WACO... .WACO 


The New York State Broadcasting System 
The California Radio System 


[381] 


MORE PROOF 
that AKRON OHIO is a 


FREE-SPENDING | 
M-A-R-K-E-T 


Media Records Lineage Figures for the Year 1936 


Gain over 
Total 1935 

| CTE, 620,417 
General Display ........ ae 479,662 
Automotive Display ... cen ane 4,057 
Total Display rovsassavecces) WEES 1,173,163 
III ifort roan csasuszaonsienacietaboaeechicabiiag 2,496,395 354,726 
Total Advertising ecandeecianian 14,059,462 1,497,458 


In December 1936—1386 new passenger cars sold—a gain of 
645 units, 87%. Cover this alert, free-spending market by 
concentrating your advertising in Ohio's Ist Evening Newspaper. 


AKRON BEACON JOURNAL | 


Established 1839 
@ One of America's Outstanding Newspapers 
@ REPRESENTED BY STORY, BROOKS & FINLEY 


ett Jeet) [teat] ite! | tat 
Scientific Window Coverage | 


/\ 
FOR, LOW COST B SALES RESULTS 


Our facilities make it possible to plan a window display 
campaign with the same certainty of what you are getting 
as on your publication advertising. 


Our Associate Offices offer a knowledge of local retail 
conditions which assures the best locations everywhere, 
whether the campaign be national, regional or local. 


Our installation service combines professional skill with 
methods which assure uniformity of all displays. 


For list of our 142 Associate Offices, covering 6,087 .« 
cities and towns, write 


WINDOW ADVERTISING, INC. AND ASSOCIATES | 
1765 Fifth Avenue, New York - 560 W. Lake Street, Chicago 
Teen nn eee 


WANT LEATHER GIFTS 


Write for Cataloa PRIZES 
300! OLIVE ST. 


ST.LOUIS. 


PREMIUMS 


BRAY & FISLER 


TORONTO? 


mme| GIBBONS KNOWS CANADA 


Ld J. J. GIBBONS LIMITED » ADVERTISING AGENTS bo“ 


Marketing Flashes 


(Continued from page 301) 


called “Texaco Advertising Coverage.’ 
We turn to the page where Little Rock 
is listed. We see that the national 
magazines have a circulation of 14,889. 

“This alone gives a numerical cover- 
age of 93.6% of the 15,913 passenger 
cars. But that is not all... . There 
are, in Little Rock, no fewer than 
18,799 radio sets. A large percentage 
of these are tuned in every Sunday 
night to the popular Eddie Cantor 
‘Texaco Town’ broadcast. 

“In addition, the ‘Coverage’ booklet 
shows a Texaco dealer in Little Rock 
also enjoys the benefit of farm circula- 
tion amounting to 5,141. 

“Would you like to know how much 
local advertising Texaco is giving you 
in your town? Just ask the Texaco 
salesman who calls on you. We are 
sending him his personal copy of the 
booklet so that he can give you exact 
1937 figures.” 

For astuteness in bringing a vast 
national program right down to Main 
Street, the Texaco plan is to be com- 
mended. 


Zecol 

Zecol, Inc., Milwaukee, starting 
from scratch in the depression year 
1932, has expanded to the point where 
its automobile wax and scum remover 
is sold by 40,000 dealers in 36 states 
and Canada. 

Automotive trade journals have sold 
jobbers and dealers, and tests in Buf- 
falo and Milwaukee have convinced 
the firm that newspapers and bill- 
boards are effective consumer ammuni- 
tion. Radio station breaks are also 
employed; and a series of letters to 
owners of new cars in Buffalo follows. 

The company is spending much time 
educating garage and filling station at- 
tendants. Sales clinics at jobbers’ 
headquarters for dealers, and numer- 
ous signs, flour and counter stands 
form this portion of the merchandis- 
ing. If conditions warrant, national 
consumer advertising will be added. 
For the present, close and unremitting 
attention to jobber and dealer educa- 
tion is shoving the company ahead. 


The Sales Chessboard 


C. A. Grainger is appointed s.m. of 
National Rivet & Mfg. Co., Waupon, 
Wis., affiliated with the Shaler Co. 
He held the same post with American 
Hammered Piston Ring Co. and the 
Allbestos Co. 

R. F. Holloway, announces the A. E. 
Staley Mfg. Co., Decatur, IIl., has been 
named ad. mgr. of the package depart- 


SALES MANAGEMENT 


ee ee el 


U 


With intelligentsia 
and low-brows alike 
devoted to murder in 
books, plays, and 
movies, “Mr. Ree,” 
a parlor murder 
game, has a tremen- 
dous potential mar- 
ket. One New York 
department store 
sold out its stock of 
the new thriller in 
two hours. 


ment. For the past seven years he was 
asst. ad. and promotion mgr. with 
Libby, McNeill & Libby. In his new 
position Mr. Holloway will coordinate 
merchandising and advertising of 
Staley’s Cube Starch, Cream Corn 
Starch and the line of table syrups. 

William Oseasohn, recently named 
sales and sales promotion mgr. of the 
Warwick Chemical Co., West War- 
wick, R. I., will be in charge of the 
new office opened in New York for 
“Impregnole,” spot and water-repel- 
lent for textiles. 


Mr. Ree 


For 71 years Selchow & Richter Co., 
New York, has been providing good 
clean fun with the parlor game of 
Parcheesi. More recently it has cor- 
ralled game addicts with Cavalcade, 
Cargoes, Scoralet and other ingenious 
devices for young and old. Now it 
presents a pastime that bids fair to be 
a merveracker—-a mystery thriller 
called “Mr. Ree.” 

Object of Mr. Ree is to commit a 
poison, dagger, or pistol murder by 
drawing cards and moving hollow 
pawns about on a playing board. From 
there on it’s somewhat like the old 
parlor game of “Murder.” The detec- 
tive, the player who is Mr. Ree for 
the game’s duration, starts sleuthing 
and questioning other players in an 
effort to solve the murder. If he 
doesn’t succeed in ten minutes he is a 
bonehead. 

Mr. Ree has complexities causing it 
to turn out differently each time it is 
played. Eight may play—Aunt Cora, 
Maid Beatrice, Butler Higgins, Artist 
George, and so forth in the best tradi- 
tions of whodunit spine-pricklers. Any 
one of them might be murdered or 
murder a fellow player just because 
the cards say so. There are no dice, 
spinners, or humdrum pathways to fol- 


FEBRUARY 15, 1937 


| 

| 
low—merely a cozy diversion of first 
degree homicide. 

H. B. Le Quatte, Inc., agency in 
charge of the account, ‘frankly expects 
this to be another Monopoly, since its 
principle of play and interest is as 
different from the board games on the 
market as Monopoly was different from 
other games at the time it started.” 

Mr. Ree is being merchandised 
through every possible outlet: Depart- 
ment stores, sporting goods, hardware, 
stationery, and mail order establish- 
ments. National advertising begins 


| 


with the March issue of Esquire. 


| 
Canned Foods Contest | 

Repeating its successful ‘Canned | 
Foods Menu Contest” for the second 
year, American Can Co. is sending out 
5,000,000 contest folders to grocers, 
and an additional 2,500,000 to be dis- 
tributed through the Women’s Exposi- 
tion of Arts and Industries. The final 
cook-off is to be held at the Exposition 
in the week of March 29. 

Contestants pian and prepare a four 
course dinner of six recipes, at least 
five of which have canned food in- 
gredients. The country has been 
divided into six sections. Winners 
from each section get a free trip to 
New York where they serve their 
meals under the judges’ eyes. First 
prize is $500, others down to $100. 

Duplicate prizes are awarded grocers 
from whom winning contestants buy 
their supplies. Last year more than 
37,000 stores staged canned goods 
displays. 

Each retailer has been given 100 de- 
scriptive folders and a counter card 
explaining the contest and the tie-up 
with the Women’s Exposition. By 
having that organization sponsor and 
judge the contest, Canco expects to 
entice a large part of the nation’s can- 


opening cooks. 


Yowll profit by 
a “*breather’’ 
by the sea 
at 


CHALFONTE 
HADDON | 
HALL 


A good business move 


is to leave your office 
for a few healthful days 
at the shore. Good food, 
good rest, and good salt 
air at these beachfront 


hotels will result in 


good work afterward. 
Health baths. Varied 
amusement. Moderate 


rates. 


= Leeds and Lippincott Company 


/ ATLANTIC CITY 


Your package should be 
your best salesman. 


If it's a back-shelf number 
—consult us, 


PACKAGE 
DESIGNS 


GOLDSBOROUGH & SMITH 
101 PARK AVENUE, NEW YORK 


SALES CONTESTS 


Planning and Merchandising 


Sample copy of our Merchandise Prize Catalog, 
and brochure, ‘Information on Sales Contest 
Mperation,’’ furnished to sales and advertising 
executives without charge. 


SALES CONTESTS, INC. 
10th Floor American Bldg., Dayton, O. 


383} 


MARKET 
RESEARCH 


Monthly Magazine 


for executives who know 
the value of fact finding. 
This pocket sized publi- 
cation is crammed full with 
digestible material—self-re- 
ported experiences of large 
company heads — thought- 
provoking and idea-inspir- 
ing cases outlining results 
of the use of market re- 
search in actual businesses. 
Learn what market re- 
search is doing for the 
OTHER FELLOW, and 
how you, too, can effect 
savings in your business 


through its use. 


Fill in the Subscription Blank 
Below and Mail Today 


MARKET RESEARCH 
Rockefeller Center, New York 


Please enter my subscription for one year for 
MARKET RESEARCH 


I enclose $1 Bill me for $1.... (Foreign $2) 


Name 


Company 


Street 


City 
384] 


Booklets reviewed below are free unless 
otherwise specified, and available either 
through this office or direct from the 
| publishers. In addressing this office, 
please use a separate letterhead for each 
booklet requested, to facilitate handling. 
The address is Sates MANACEMENT 
Readers’ Service Bureau, 420 Lexington 
Avenue, New York, N. Y. 


1935 Retail Sales Census 
Summarized by Katz Agency 


With its usual thoroughness, the E. Katz 
Special Advertising Agency has dug deep 
| into the maze of statistics released in De- 
| cember, and has summarized the 1935 U.S 
| census of retail sales, in a sixty-page study 
| ‘983 Cities and 3,071 Counties.” This is 

not a free survey, but at $5.00, the published 

price, it should be dirt cheap for marketing 
Organizations which seriously intend to 
make use of the voluminous government 
data, and want to eliminate the analysis 
which the Katz organization has here per- 
formed. 

Section I lists for all cities, population 
(1930); 1935 retail sales, total and food, 
automotive and drug; and two indispens- 
able marketing factors, the per cent of U. S. 
for both population and total retail sales. 
Cities are grouped according to (1) 100.- 
000 and over, (2) 50,000 to 100,000, (3) 
30,000 to 50,000, (4) 20,000 to 30,000, 
(5) 15,000 to 20,000, and (6) 10,000 to 
15,000. A recapitulation by population 
groups, with cumulative totals, is included. 

Section II, following a page of state 
totals, gives the same data for cities ar- 
ranged in order of population in each state. 
Counties are listed after each city name. An 
added marketing factor in this section is the 
percentage of city population and retail 
sales to the state total. Percentage of U. S. 
total is also given, as before. 

Section III gives county population and 
retail sales data, by states. Both factors 
of percent of population and sales to U. S. 
total and state total are given for each 
county. In addition a column showing 
radio homes (Jan. 1, 1936) is provided. 

This is the seventh in the series of U. S. 
Census summaries published by the agency, 
extending back to 1931. Arranged so as to 
make possible ready comparisons and esti- 
mates between cities in different states and 
cities within the same states, as well as 
counties, it should be a boon to marketeers. 
Copies are on sale at the New York office 
of the E. Katz Special Advertising Agency, 
500 Fifth Avenue, attention Eugene Katz. 


How and Why Columbus Goes 
Shopping Analyzed by Citizen 

A valuable addition to the list of thor- 
ough market surveys has just been pub- 
lished for Columbus, Ohio, by the Citizen 
of that city. Executives distributing and 
| advertising in that market will find it de- 
| cidedly worth while. Carried out along 
| lines somewhat similar to those previously 
| used in Cincinnati, Cleveland, Chicago and 
| Minneapolis, the survey is an inventory of 
| 2,087 homes, which as a 2.3 per cent section 
| of the entire market may be considered an 


adequate sample of the market picture. The 
method embraced the use of an extensive 
retail questionnaire, which was distributed 
by the Girl Scout organization of Colum- 
bus. No interview was conducted—each 
housewife was requested to fill in the ques- 
tionnaire at her leisure and return it to the 
Scout member who gave it to her. Printed 
instructions emphasized the privacy of the 
reply, so as to secure maximum accuracy 
in complaints and product preferences. A 
sample questionnaire, included in the pub- 
lished report, amply instifies the estimate 
of some 40 m:nutes required to completely 
fill out the questions asked. For firms sell- 
ing through department stores a great deal 
of information is given covering the pref- 
erences and actual purchase habits of con- 
sumers in these stores, particularly as to 
clothing, housewares, drugs and toiletries. 
Food and drug sales are further analyzed as 
to the various chain and independent out- 
lets (listed and named), with a pantry 
shelf inventory of preferences on coffee, 
cereals, soaps, milk, and toilet tissue. Cop- 
ies of the survey, “Columbus Went Shop- 
pinge—Where and Why,” will be sent on 
request to Ralph Henderson, The Colum- 
bus Citizen, Columbus, Ohio. 


Ohio Liquor Sales Analyzed 
In Detail by Cleveland Press 


Based on the complete records of the 
Ohio Department of Liquor Control, a sur- 
vey of all liquor sales in that state has just 
been published which should be “must” in- 
formation in the headquarters of all liquor 
manufacturing and distributing organiza- 
tions, and their advertising agencies. While 
it is probable that the study has been dis- 
tributed direct to these companies by The 
Cleveland Press, which compiled and pub- 
lished the data, it is noted here for the 
benefit of any individuals who may not 
have received it, and as an unusually fine 
market study. Ohio, a liquor “monopoly” 
state, is a laboratory permitting exact de- 
termination of distribution and sales, as 
every sale becomes a permanent record. Be- 
lieve it or not, 791, or 58.2%, of the 1,360 
townships in the state forbid sale of liquor 
by the glass—70% of the mile area and 
16% of the state population. 167 town- 
ships and 84 villages and towns, as a result 
of local option elections are now bone dry, 
permitting neither sale by glass or through 
package stores. Hence the state illustrates 
some of the unusual difficulties of distribu- 
tion in the industry, and the survey by 
maps and statistical information shows ex- 
actly where the distillers can—and can not 
—go after business. The market total is 
here shown for the year ending September, 
1936 as $45,000,000—with a three year 
monthly total charted to show 100% in- 
crease in that period. Districts are mapped 
to show volume, and preference as to types 
of liquor. Gallonage sales by brands, 
wholesale and retail, are shown, together 
with identification of distiller or distributor. 
Standing of the thirty companies which sell 
95.9% of the entire volume is given. In 
short, the market is thrown wide open to in- 
spection. Copies of “An Analysis of Ligq- 
uor Sales in Ohio,” available on request 
of L. A. McPherson, The Cleveland Press, 
Cleveland, Ohio. 


Legionnaires Register Buying 
Habits and Brand Preferences 


3,199 interviews were secured by the 
Daniel Starch organization among subscrib- 
ers of the American Legion Monthly, in 
217 cities and towns, to determine buying 
and reading habits of this important group. 


SALES MANAGEMENT 


The results of the study have been published 
and are just now available to marketing 
executives, showing occupational analysis, 
marital and family status, age groups, types 
of business owned, home ownership and 
telephones. 

Buying habits and preferences are given 
for automobiles, 72.8% owning, as com- 
pared with U. S. average of 58%; tires, 
battery and spark plug equipment; trucks, 
an estimated market of 98,095; cigarettes, 
61.6% smoking, with Lucky Strike, Camel 
and Chesterfield leading by a wide margin; 
86% owning radios, as compared with na- 
tional average of 69.4%, and Philco, Ma- 
jestic. RCA and Atwater Kent leading; 
41.5% owning automatic refrigerators with 
Frigidaire, G. E., and Kelvinator leading; 
and shaving cream and razors used. 

Interviews were secured on a population 
basis comparable with the total distribution 
of the magazine, 853,000, and for the pur- 
pose of showing the market covered, the re- 
plies are projected against the total circu- 
lation. For copies, requests to Herbert 
Schaeffer, American Legion Monthly, 521 
Fifth Avenue, New York City. 


American Druggist Launches 
$100.000 Industry Drive 


For a promotion program which is sim- 
ple in concept but tremendously powerful 
in its ramifications—in other words, an 
ideal sales promotional program—we refer 
our readers in the drug and allied fields to 
the American Druggist presentation, $100,- 
000 More Sales for Drug Stores.” “While 
this has been given wide distribution in 
the field, it deserves generous treatment 
here, on the chance that it has not regis- 
tered unanimously. 

In short, the plan is based on increasing 
the prescription business of drug stores, by 
enlisting the cooperation of doctors, drug- 
gists, manufacturers, and the public. It is 
estimated that if 100,000 doctors will write 
two more prescriptions per day, the prte- 
scription and allied business volume re- 
sulting will equal the $100,000 goal—and 
the interests of the public will be served 
through eliminating haphazard medical ad- 
vice. more cften than not incorrectly re- 
layed to friends: and the professional busi- 
ness interests of the medical and pharma- 
ceutical fields will be served, along with 
those of the manufacturers. The campaign, 
as outlined in a large spiral-bound book, 
includes powerful advertisements in Mod- 
ern Medicine, directed at the physicians; na- 
tion-wide broadcasts on a “Your Good 
Health” program, including retail drug as- 
sociations and dedicated to the interests of 
the physicians, emphasizing the importance 
of prescriptions; newspaper and magazine 
publicity, reaching the general public as 
well as doctors and druggists; editorial co- 
Operation by American Druggist; and a 
vigorous merchandising campaign including 
booklets, window streamers, and direct mail 
material for manufacturers and druggists. 

Sales and advertising executives who 
have not received full information on the 
program should request the booklet, address- 
ing Z. I. F. Moore, American Druggist, 

72 Madison Avenue, New York City. 


Your Biggest Markets: How 
They Vary in Retail Sales 
(Continued from page 324) 
lation of the last-named city. 
Competition is not limited to those 


engaged in the same industry, or to | 


FEBRUARY 15, 1937 


those marketing the same product. 
The grocery store competes with the 
beauty shop for the consumer dollar, 
the drug store with the department 
store, and the service station with the 
furniture store. So it goes, with all 
the cross fires of salesmanship and 
advertising. All combine to empha- 
size the necessity of marketing infor- 
mation that is accurate, and compiled 
in such a way as to be usable. The 
old Greek motto, “Knowledge Is 
Power,” could well be revised to 
“Market Knowledge Is Sales Power.” 

The number of corporations which 
have an accurate and working knowl- 
edge of their potential markets, and 
of their position in their own indus- 
try, is small. Many companies do 
not have accurate sales costs because 
of their failure to draw the line care- 
fully between administrative and sales 
expense. Any accountant will confirm 
this statement. Market expansion is 
frequently limited because of high 
costs of production. These statements 
are made only after intimate contacts 
with many industries, making varied 
products marketed through many 
channels. Further comment on the 
need for market data should not be 
necessary. There is plainly a need 
for accurate selling costs to be known, 
especially so in these days when 


presidents of corporations and many 
of their first-line executives are en- 
gaged in sales activities in one way 
or another. High production costs 
which limit the development of mar- 
kets are usually beyond the control of 
the sales department. The responsi- 
bility for the correction of these con- 
ditions rests upon management. 

Management plans for plant ex- 
pansion, plans for capital, plans new 
products, plans promotional and sales 
activities—why not plan in advance 
for profit? Here is a technique rela- 
tively new to many corporations, that 
will pay large dividends. Knowing 
where markets are and using all the 
data available, it is possible to antici- 
pate sales over a given period. Costs 
may be determined in advance if the 
accounting is adequate, and adjusted 
to fluctuations in volume. ‘“‘Costs’’ is 
used here in the broadest possible 
sense, and refers to all costs, both 
fixed and variable. 

With so many external influences 
being brought to bear on business, 
there is certainly need for planning 
on and expecting a profit. Profit still 
remains a_ legitimate incentive in 
business, and must continue if busi- 
ness is to be perpetuated. The factual 
approach to marketing data in these 
articles is a good starting point. 


Personal Service and Supplies 


Cash Basis Only. Remittance Must Accompany Order. 
Classified Rates: 50c a line of seven words, minimum $3.00. No display. 


EXECUTIVES WANTED 


SALARIED POSITIONS, $2,500 to 
This thoroughly organized advertising service of 
27 years’ recognized standing and reputation car- 
rics on preliminary negotiations for positions of 
the caliber indicated through a procedure indi- 
vidualized to each client's personal requirements. 
Several weeks are required to negotiate and each 
individual must finance for moderate cost of his 
own campaign. Retaining fee protected by a 
refund provision as stipulated in our agreement. 
Identity is covered and, if employed, present posi- 
tion protected. If you have actually earned over 
$2,500, send only mame and address for details. 
R. W. BIXBY, Inc., 118 Delward Bldg., Buffalo, 
mM. ee 


HELP WANTED 
SALES MANAGER IS DESIROUS OF EMPLOY- 


ing an assistant who has had experience in cor 
respondence with jobbers (of whom we have about 
300) and also missionary and field men (of whom 
we have about 200). Must be particularly experi- 
enced in h 


. writing the right type of letter to keep jobbers’ 
organizations ‘‘pepped sk . « and must under- 
stand the value of jobbers’ salesmen—of whom 
about 3,000 must be contacted. Location in New 


information regarding 
>, Salary expected, etc, 
Tr, 420 Lexington Ave., 


York City. Please give full 
< ] ncations experience, ag 
Box 515, SALES MANAGEMEN 


New York, N. Y. 


C 


$26.000 | Ave.. ew Verk, N. ¥ 


hecking the work of field missionary men | 


WANTED — YOUNG MAN OF UNUSUAL 


qualifications in Sales Promotion, Advertising and 
Merchandising. Must possess outstandir ability 
to project productive ideas for sales campaigns 


package improvements and varied sales promotion 
detail. Desirable connection with nationally knows 
Food Manufacturer for right party. Write fully, 


stating age, experience, education, salary expected, 
etc. Box 517, SALES MANAGEMENT, 420 Lexington 


MISCELLANEOUS 


PURCHASING AGENTS APPROVE NEWEST 
process reproducing direct from your copy! Ideal 
for illustrated salesletters, advertising !iterature, 
sales manuals, house organs. ‘Typesetting and cuts 
unnecessary! 500 copies (81x11) $2.63; ad 
ditional hundred copies 22¢ Any size furnished. 
Samples. Laurel Process, 480 Canal St... M.. FT. Ct; 


POSITION WANTED 

YOUNG MAN DESIROUS TO PROVE ABILITY 
in the sales field. Five years experience in selling 
to consumers, dealers and wholesalers, last two 
years as manager of an established retail and 
wholesale business. College education in — 
Management. Wishes a sales position with 4a 
future. Box 518, SALES MANAGEMENT, 420 Lex 
ington Ave., New York, N 


SALES EXECUTIVE, NOW EMPLOYED, DE- 


ires new connection giving him definite respons 
vility and authority tf producing profitable sales 
vol Sixtec vc s Ww large fm iI ure 
ein lati il \ \ t lasses Of rade. 
kxg r branct age- 
net home oth pron ilso 
spec sa ‘ i nts 1 on 
Atla s Cay willing Arie 
t t help « and » keey 
Sa t nag A obbers sold. Age 
te one, x t hneait! ind habits; irried 
< 4 graduate; Christian; pre essive and - 

Will start moderate salary and depend on m 
results to « kly increase it Box No. 4519. SALFS 
MANAGEMENT, 420 Lexington Av New oO 


BY RAY BILL 


OLUNTARY TRADE AGREEMENTS: A group 

of business editors recently undertook to appraise 

informally what is going on with respect to fair 
trade practices—and with special reference to those indus- 
tries in which voluntary codes have been adopted in con- 
junction with the Federal Trade Commission or on an 
unofficial governmental basis through trade associations. 
There seems to be pretty substantial agreement among these 
editors on two significant scores. 

The first observation is that governmental control through 
legislation over such phases of competition as (1) selling 
below cost, (2) loss leaders and (3) enforceable price 
maintenance, seems doubtful of accomplishing the expressed 
objectives because of the fact that acceptable and workable 
definitions of what laws seek either to require or prevent 
seem almost, if not entirely, hopeless of practical solution. 
Also, even when such laws are passed or such agreements 
entered into with the Federal Trade Commission, there 
seems to be nothing like adequate staffing or financing to 
assure anything approaching complete and equitable en- 
forcement thereof. 

The second observation is that most of the good which 
is being accomplished with respect to fair trade practice lies 
in the moral influence which the leading concerns in an 
industry, generally representing the majority, have upon an 
industry as a whole. Where trade associations exist that 
are truly representative and under competent management, 
this moral force apparently exceeds in effectiveness anything 
which has been accomplished as a result of recently enacted 
trade practice laws or Federal Trade Commission codes. 


ITHOUT BENEFIT OF LOBBY: Sales execu- 

tives must be increasingly concerned with the 

policies of Labor, not only because of their grow- 
ing influence on legislation of the states and nation, but 
especially because so much of the Labor influence on legis- 
lation bears directly on the sales side of business. At the 
present time, Labor presents a solid front in its advocacy of 
stabilizing and augmenting prosperity through (1) higher 
dollar wages and (2) shorter working weeks. The problem 
which progress along such lines involves as regards the 
price structure of business is necessarily important to sales 
executives. But if, as now appears likely, Labor unions are to 
be placed beyond the pale of even judicial jurisdiction, 
there is an even more basic matter deserving of thought. 


[386} 


We refer to the idea that all officers of all Labor unions 
acting as a bargaining agency with employers should be re- 
quired to register officially the names of all officers, all of 
whom should be required by law to be American citizens. 
If Labor is destined to govern the affairs of the country to 
the extent which now seems possible, it may be advisable 
to go one step further by specifying further that the presi- 
dents of all such unions be American born citizens. 

It is a known fact that Labor leadership is as full of foul 
spots as has ever been true of business leadership; it is also 
pretty well established that the most corrupt and unreason- 
able elements in the Labor ranks are those who have been 
brought up on foreign fodder as contrasted with the social 
ideals of real Americanism. On this account it should be 
quite as beneficial to Labor itself as to the American public 
to know that Labor leadership is dominantly pro-American. 
Indeed, as a matter of good public relations, we predict that 
Labor will sooner or later be compelled to demonstrate its 
Americanism in order to win public support in many of 
the crises which are now pending and which lie ahead. 

It will take courageous members of Congress to introduce 
bills carrying out the objective set forth above. But it 
should be done, and while such bills will probably be left 
high and dry as regards powerful lobby activity, they ought 
to secure the individual approval of those Labor leaders 
who are keen enough to perceive that a purge of Labor 
leadership for the sake of greater Americanism is highly 
important to the future standing and progress of the whole 
Labor movement. 


HE AGE OF PRIZE CONTESTS: The super-sized 

advertising campaign being put currently behind the 

Old Gold cigarette prize contest involving aggregate 
cash prizes of $200,000 serves to emphasize the fact that 
the country is passing through what might aptly be termed 
“The Age of Prize Contests.’ If some research organiza- 
tion undertook to make a current inventory of the aggre- 
gate value of all prizes of all kinds now being offered to 
the consuming public, the total dollars involved would 
undoubtedly prove staggering in amount. Most likely the 
use of prize contests will continue to increase until finally 
it is overdone. Meanwhile, the trend is still definitely 
upward and quite in keeping with what can be regarded 
as the current gambling psychology of the American public. 


SALES MANAGEMENT 


* 


NBC ANNOUNCES 


“NEW STRENGTH 
IN NEW ENGLAND!” 


WEAN and WICC added 


\ X THERE the wheels whirr fastest and the crowds are thickest— 


that’s where the NBC Blue Network is strongest in New 
England. On January Ist, 1937, Stations WEAN, Providence, and 
WICC, Bridgeport, were added to supplement 50,000-watt WBZ, 
in Boston, and WBZA, in Springfield. 

These additions give advertisers a greater New England audience 
for their Blue Network shows—a greater, more concentrated market 
for their goods. Such expansion is only ove of many on the NBC 
Blue in recent months, but it is typical of the aggressive plan which 


has made the Blue a Great Network for both advertisers and listeners. 


THE GREAT 


NBC BLUE NETWORK 


SERVING ALL PRINCIPAL MARKETS IN THE UNITED STATES 


KIND OF ADVERTISING ink eae unk onaen Roi 
Automotive 544 615 71 
Building and Electrical Products 205 327 122 
Financial and Insurance 266 301 35 
Foods, Beverages and Confections 100 156 56 
House Furnishings 42 59 17 
Liquor, Wine and Beer 215 197 —18 (loss) 
Machinery and Manufacturers’ Materials 202 235 33 
Men's Wear 56 65 9 
Office Furnishings and Paper Goods 141 181 40 
Periodicals, Newspapers and Books 98 an 13 
Smoking Materials 97 111 14 
Toilet and Medical Goods 190 191 | 
Travel, Resort, Hotels 245 301 56 
Others 178 18] 3 
totats 2,579 3,031 452 
These gains put TIME into first place among all general magazines. .. . For which, two reasons: 


owseont 9//G 7 Yr 


TIME's 1936 gain in advertising pages was greatest 
of all magazines. Even more pleasant, more meaning- 


ful, is the fact that TIME's gains (excepting liquor— 


a loss) were spread through all classes of advertising. 


All accumulated facts point to the big 
fact that TIME gives Best Coverage of the 
Best Customer market—whether for aspirin 


or airlines, soups or shoes or steel. 


TIME is important to its readers, carries 
weight with them, has been voted ‘the 
most important magazine published in the 


U. S. today." 


TIME 


The Weekly Newsmagamne